close

Вход

Забыли?

вход по аккаунту

?

The Wall Street Journal - March 28, 2018

код для вставкиСкачать
.
WEDNESDAY, MARCH 28, 2018 ~ VOL. CCLXXI NO. 72
* * * * * *
DJIA 23857.71 g 344.89 1.4%
NASDAQ 7008.81 g 2.9%
STOXX 600 367.57 À 1.2%
10-YR. TREAS. À 15/32 , yield 2.790%
GOLD $1,341.30 g $13.10
EURO $1.2405
YEN 105.34
Prospect of increased
oversight fuels declines
in sector’s big names
Yield on the 10-year Treasury note
and broader market
Tech shares sank Tuesday amid a series of setbacks for major firms and a broad retreat from risk.
Long-term Treasury yields fell and short-term borrowing costs hit their highest level in a decade.
Index and share-price performance on Tuesday
Business & Finance
2.84%
T
echnology stocks are
suffering one of their
worst beatings in years.
The Nasdaq sank 2.9% in a
selloff that carried over to
the broader market. The
Dow fell 344.89 points, or
1.4%, to 23857.71. A1, B13
Tuesday
Dow industrials
2.82
Apple
t2.6%
2.80
Nasdaq Composite
t2.9%
–4%
2.78
Alphabet
t4.5%
2.76
9 a.m.
Facebook
Deutsche Bank’s chairman has reached out externally to potential candidates
to be the next CEO, gauging
interest in replacing Cryan. B1
t4.9%
–6
noon
Three-month U.S.-dollar
London interbank offered rate
Tuesday
–10
Glaxo agreed to buy Novartis’s stake in their consumer health-care joint
venture for $13 billion. B2
–12
2.302%
Tesla
–8
Anbang’s founder went
on trial, a month after Chinese authorities formally
seized the company. B12
t8.2%
2
1
Twitter
t12.0%
10 a.m.
A consortium led by
Carlyle Group agreed to
buy the specialty chemicals business of Akzo Nobel for $12.6 billion. B3
noon
0
4 p.m.
2014
’18
THE WALL STREET JOURNAL.
Sources: FactSet (indexes, stocks, yield); SIX Financial (Libor)
Climb in Key Rate Pinches Borrowers
Home prices continued
to grow at a rapid pace in January, as the new tax law and
rising mortgage rates made
little dent in demand. A2
BY BEN EISEN
AND CHELSEY DULANEY
Companies are paying the
most in nearly a decade for
some types of short-term borrowing, the latest threat to the
U.S. economic expansion and
already-volatile markets.
The three-month London
interbank offered rate, or Libor, climbed to 2.302% in the
U.S. on Tuesday, its highest
since November 2008. Libor
measures the cost for banks to
lend to one another and is
used to set interest rates on
roughly $200 trillion in dollar-
Tesla shares slid 8.2% as
regulators said they were
probing a fatal crash of one
of the firm’s vehicles. B4, B12
Apple said it is updating its entry-level iPad
with capabilities designed
to appeal to students. B5
World-Wide
North Korea’s Kim traveled to China on a mission to
strengthen ties with Beijing
ahead of a planned summit
with Trump. He met with Xi
and other senior officials. A1
based financial contracts globally, from corporate loans to
home mortgages.
Libor has been rising for
the past 2½ years as the Federal Reserve lifted its key policy rate, but recently the pace
has picked up. It has surged
nearly a full percentage point
in the past six months, outpacing the Fed, and could rise further with the approaching end
of the quarter, typically a time
of elevated demand for shortterm funds in the banking industry, analysts say.
Libor’s recent ascent appears to have been driven by
Russian officials’ account of a deadly shoppingmall fire in the Siberian
city of Kemerovo is being
met with public scorn. A8
William Strampel, Nassar’s
ex-boss at Michigan State,
was charged with counts including criminal sexual conduct and neglect of duty. A3
NASA announced a
roughly one-year launch
delay for the James Webb
Space Telescope. A3
Archaeologists have
found evidence of ancient
human communities in
Brazil’s Amazon Basin. A6
Antiausterity voice
Varoufakis launched a new
Greek political party. A8
Opinion.............. A15-17
Property Report... B6
Sports....................... A14
Technology.......... B4-5
U.S. News............. A2-4
Weather................... A14
World News....... A6-8
>
JU PENG/XINHUA/ASSOCIATED PRESS
Facebook’s Zuckerberg
is planning to testify before Congress about how
the Silicon Valley giant
manages its users’ data. A4
The EPA has signed a
deal to test technology from
an Israeli firm whose executives were twice granted access to Pruitt at the request
of GOP donor Adelson. A3
factors such as rising shortterm debt sales by the U.S.
government and new federal
corporate-tax policies. But
even at its elevated recent levels, the rate remains low
enough that it doesn’t appear
to pose an imminent threat to
the health of many borrowers.
Even so, the increase could
amplify the impact of the
Fed’s rate tightening and stifle
the flow of money throughout
the financial system faster
than policy makers intended,
analysts say. Such an outcome
could slow growth and intensify concerns about the valua-
tions of stocks and other assets.
“Higher short-term interest-rate costs could potentially
throw a monkey wrench into
corporations’ plans to borrow
for the future, to build factories, to buy equipment and
help make the economy run,”
said Chris Rupkey, chief financial economist at MUFG Union
Bank. “If Libor continues to go
up at this pace…that’s going to
really shock people.”
Some real-estate investment
trusts, or REITs, which hold
property such as offices and
Please see FUNDS page A4
Technology stocks are suffering one of their worst beatings in years, as investors reassess a sector that has been
considered the growth engine
of the global economy but now
faces the prospect of greater
regulatory scrutiny.
The tech-heavy Nasdaq
Composite Index fell 2.9%
Tuesday. That selloff carried
over to the broader market,
where the S&P 500 index
slumped 1.7%. The Dow Jones
Industrial Average fell 1.4%,
giving back some of Monday’s
2.8% rebound.
U.S. Treasury yields also
declined. Analysts said that
reflected in part a move by
some investors to reduce risk
at the end of the quarter by
selling stocks and putting that
cash into bonds. Bond prices
rise when yields fall.
But tech shares were hit the
hardest, dragging down the
broader market in the final
hour of trading. A series of recent developments pointed to
more government oversight of
the industry.
Facebook Chief Executive
Mark Zuckerberg is planning
to testify before Congress
about the social-media company’s privacy and data-use
standards, according to people
familiar with the matter. The
company’s shares fell 4.9% on
Tuesday and are down 15%
this month over concerns
about its handling of user
data, on track for its worst
monthly decline since 2012.
The Federal Trade Commission, in a statement Monday,
signaled that it is conducting a
broad probe of Facebook,
Please see TECH page A4
Investors worry they stayed
too long....................................... B14
Heard on the Street: Tech
values don’t reflect risk..... B14
North Korean Leader Meets
With Xi in Surprise China Visit
Pitched legal and political battles have begun over
whether the 2020 census
should ask respondents if
they are U.S. citizens. A2
The prospect of a deepening U.S.-China trade conflict has many Asia-Pacific nations worried about getting
caught in the crossfire. A6
3 p.m.
3%
A federal appeals court
revived Oracle’s copyrightinfringement claims against
Alphabet’s Google. B1
BY MICHAEL WURSTHORN
2.79% AND GUNJAN BANERJI
t1.4%
Companies are paying
the most in nearly a decade for some types of
short-term borrowing, the
latest threat to the U.S.
economic expansion. A1
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
OIL $65.25 g $0.30
Tech Worries Drag Down Stocks
What’s
News
CONTENTS
Banking & Finance.... B12
Business News...... B3
Crossword.............. A14
Heard on Street. B14
Life & Arts....... A11-13
Markets............. B13-14
HHHH $4.00
WSJ.com
North Korea’s Kim Jong Un, left, and Chinese President Xi Jinping.
Wynn Accusers
Fault Firm Culture
BEIJING—North
Korean
leader Kim Jong Un traveled to
the Chinese capital—his first
trip outside his own country
since coming to power—on a
mission to strengthen ties
with Beijing ahead of a
planned summit with U.S.
President Donald Trump.
During the visit, which
China and North Korea declined to reveal until after it
had ended, Mr. Kim met Chinese President Xi Jinping and
other senior officials to discuss
bilateral ties and tensions on
the Korean Peninsula, Chinese
state media said Wednesday.
Mr. Kim’s diplomatic out-
LAS VEGAS—Angela Saxton
was a young spa attendant at
a casino run by Steve Wynn in
the 1990s when, she said, the
mogul sexually assaulted her.
One day later, the casino’s
By Alexandra Berzon,
Chris Kirkham,
Elizabeth Bernstein
and Kate O’Keeffe
head of human resources
sought her out to deliver an
unequivocal message.
“You need to keep your
mouth shut,” the executive,
Arte Nathan, told her, according to Ms. Saxton.
Mr. Wynn resigned as chief
executive of Wynn Resorts
Ltd. after The Wall Street
Journal published an article in
January documenting allegations against him, and he has
since sold his entire 12% stake.
Now regulators are investigating the company he left behind.
Descriptions of the workplace from dozens of former
employees paint a consistent
picture of life at Wynn properties, and of the managers Mr.
Wynn hired and promoted.
Complaints were often dismissed or ignored. Supervisors sometimes looked the
other way when Mr. Wynn
asked for the private company
of workers.
Some supervisors advised
employees to keep quiet to
protect their jobs. Others were
instructed to find damaging
information on complainants
as a pretext for firing them.
Mr. Nathan, who handled human resources for many years
Please see WYNN page A10
reach to China followed a U.S.
tilt toward a tougher line
ahead of denuclearization talks
planned for May. Since agreeing to meet Mr. Kim, President
Donald Trump has fired his
pro-engagement secretary of
state, Rex Tillerson, and named
the hawkish John Bolton as national security adviser.
For North Korea, relations
with China are crucial because
almost all of North Korea’s
trade goes across the two
‘All by Myself’
In a Solo
Karaoke Booth
i
Employees say managers discouraged
complaints or looked the other way
By John Lyons,
Jeremy Page
and Chun Han Wong
i
SHANGHAI—Cao Zhengning
loves karaoke but fears her
tone-deaf vocals irritate any
audience.
“I just feel sorry for people
who have to listen to my singing,” says the 35-year-old
sportswriter who has been
self-conscious about it since
childhood.
Ms. Cao now indulges her
pleasure in private. On her
way to shop for groceries in a
Shanghai mall, Ms. Cao slips
into a soundproof room a little
larger than a telephone booth
and sings “The Sorrow That
Hasn’t Yet Turned to Tears,” a
pop ballad by the Japanese
duo KinKi Kids.
Alone in the booth, she
Please see SING page A8
Asia fears fallout in U.S.China trade war....................... A6
Salesforce.
#1 CRM.
i
Tone-deafsingers
find anaudience:
themselves
countries’ shared border. Beijing’s willingness to strictly
enforce international sanctions in the past year
squeezed North Korea’s economy. Pyongyang’s goal is likely
to win China’s support in talks
with the U.S. and pave the way
for a loosening of trade restrictions.
The White House said it
saw Mr. Kim’s visit to China as
further evidence that the administration’s “campaign of
maximum pressure is creating
Please see KOREA page A6
Ranked #1 for CRM Applications based on
IDC 2017H1 Market Share Revenue Worldwide.
19.9%
8.4%
6.1%
2013
2014
2015
2016
2017H1
Source: IDC Worldwide
Semiannual Software
Tracker, October 2017.
salesforce.com/number1CRM
© 2018 salesforce.com, inc. All rights reserved. Salesforce.com is a registered
trademark of salesforce.com, inc., as are other names and marks.
.
A2 | Wednesday, March 28, 2018
* ***
THE WALL STREET JOURNAL.
U.S. NEWS
Fed’s Bostic Sees Upside Risks
Home-Price Surge
Could Ease in 2018
Atlanta bank president
says stronger growth
than expected could
accelerate rate hikes
BY LAURA KUSISTO
ATLANTA—Federal Reserve
Bank of Atlanta President Raphael Bostic said he supports
plans to gradually raise interest
rates but uncertainty over how
the economy will respond next
year to tax cuts and increased
government spending could
complicate monetary policy.
The Federal Reserve could
soon face rising chances that
the economy grows more
quickly than forecast and
leads to a slightly faster pace
of rate increases, Mr. Bostic
said in an interview with The
Wall Street Journal.
This marks a reversal after
several years when the greater
risk was that growth would
disappoint, forcing the Fed to
dial down its rate-increase
projections, he said.
“The risks are more to the
upside now,” he said. The
prospect for stronger-thananticipated growth is especially the case for 2019 and
2020, he said.
“There is more uncertainty
about what 2019 is going to
look like,” Mr. Bostic said.
Mr. Bostic said the economy
is performing well for now. “I
don’t see imminent inflation
or overheating,” he said.
Federal Reserve officials
signaled last week they could
pick up the pace of interestrate increases to cool economic growth after next year.
Fed officials, including Mr.
Bostic, voted unanimously last
CHRISTOPHER DILTS/BLOOMBERG NEWS
BY NICK TIMIRAOS
The Fed’s Raphael Bostic said the economy is doing well but inflationary pressures could rise in 2019.
week to raise their benchmark
federal-funds rate by a quarter
percentage point to a range
between 1.5% and 1.75%.
Officials said they expected
to lift it an additional two or
three times this year and
three times next year.
New forecasts showed Fed
officials project faster economic growth, higher inflation
and lower unemployment in
coming years. They indicated
they expect they will need to
tap the monetary brakes, raising rates in 2020 to a level
that would mark the first time
in more than a decade that interest-rate policy was deliberately restrictive.
Congress and the White
House late last year approved
tax cuts of $1.5 trillion over 10
years. In February, they agreed
to raise federal funding limits
by $300 billion over two years.
While it is possible the tax
cuts could raise growth without
boosting inflation by lifting the
economy’s productive capacity,
the federal spending increase is
likely to boost demand, which
could put more pressure on inflation, Mr. Bostic said. “The
range of possibilities has broadened, at least in my mind. It
could be that 2019 is going to
be where more of the action is.”
When it comes to forecasting both the economy and interest rates beyond this year,
“we have a wider range of
possibilities” with a “wider
range of appropriate responses we have to consider.”
Separately, Mr. Bostic said
he welcomed a report that said
San Francisco Fed President
John Williams is the front-runner to become the next president of the New York Fed
when its current president,
William Dudley, retires this
summer. The Wall Street Journal reported Saturday that Mr.
Williams is the front-runner.
Mr. Bostic was a classmate of
Mr. Williams while they completed graduate economics work
at Stanford University. Mr. Bostic earned a Ph.D. there in 1995,
one year after Mr. Williams.
“I’ve known him for a long,
long time....He is smart. He
has been an innovative manager, and he’s been a great colleague,” Mr. Bostic said. “The
New York Fed would be very
lucky to have him.”
Home prices continued to
grow at a rapid pace in the first
month of 2018, as the new tax
law and rising mortgage rates
made little dent in demand in
the early weeks of the year.
The S&P CoreLogic CaseShiller National Home Price
Index, which measures the
price of a typical single-family
home in major metropolitan
areas across the country, rose
6.2% in January, down slightly
from a 6.3% year-over-year increase reported for December.
The 10-city index gained 6%
over the year, unchanged from
the prior month. The 20-city index gained 6.4%, up slightly
from 6.3% the previous month.
“The home-price surge continues,” said David Blitzer,
managing director at S&P Dow
Jones Indices.
Home-price gains picked up
steam in 2017 from 2016. The
national Case-Shiller index is
now 6.3% above the peak
reached in the housing bubble
in 2006. Home prices fell to a
bottom in 2012, before matching that peak again in late 2016.
Home prices are continuing
to grow about twice as fast as
incomes, despite a strengthening economy, which is making
it difficult for millennials to
break into the market and buy
their first homes.
“Home prices are racing
ahead of worker earnings and
this will prove to [be] unsustainable over the longer run,
and we are keeping our fingers
crossed this latest bubble in
housing prices won’t end with
a bang again like it did over a
decade ago,” said Chris Rupkey, chief financial economist
at MUFG Union Bank. Mr. Rupkey noted that prices were rising in the mid-double digits in
the mid-2000s before the bubble burst so the gains appear
to be more sustainable today.
Economists expect the pace
of price growth to slow this
year, because of the new tax
law that reduced the incentive
for homeownership, as well as
rising mortgage rates.
Markets that are seeing the
steepest increases remain concentrated in the West. Seattle
reported the largest annual
gain, at 12.9%, followed by Las
Vegas at 11.1%. San Francisco,
which had seen price growth
drop out of the double digits,
rebounded with a 10.2% gain.
Peak Condition
S&P CoreLogic Case-Shiller
National Home Price Index,
change from a year earlier
15%
10
5
0
–5
–10
–15
2007
’10
’15
Source: S&P Dow Jones Indices
THE WALL STREET JOURNAL.
Battle Lines Drawn Over Census Citizenship Question
WASHINGTON—Pitched legal and political battles have
begun over whether the 2020
census should ask respondents
if they are U.S. citizens, with
Democratic lawmakers and
state officials lining up to block
the plan and the Trump administration strongly defending it.
By Janet Adamy,
Paul Overberg
and Laura Meckler
New York Attorney General
Eric Schneiderman said he
would lead a multistate lawsuit
to stop the administration
from adding the question to
the census after it announced
its intention to do so late Monday night. Last month, he and
18 other attorneys general and
one governor wrote to Commerce Department Secretary
Wilbur Ross, who oversees the
Census Bureau, urging him not
to proceed with the plan.
“This move directly targets
states like New York that have
large, thriving immigrant populations, threatening billions
of dollars in federal funding
for New York as well as fair
representation in Congress and
the Electoral College,” Mr.
Schneiderman said Tuesday.
California Attorney General
Xavier Becerra filed suit over
the move hours after it was
announced Monday, and New
Jersey Attorney General Gurbir
Grewal said his state would
join the coalition.
A spokesman for the Commerce Department said litigation to block the question is
without merit. The spokesman
added that the department
looks forward to prevailing in
court, and continuing to work
with the Census Bureau to conduct a complete and accurate
2020 count.
Mr. Ross, for his part, said
obtaining citizenship information would help enforce the
Growing Omission
Share of respondents who didn't
answer the citizenship question
on the American Community
Survey:
6%
4
2
0
2008
’10
’15
Source: Commerce Department
THE WALL STREET JOURNAL.
Voting Rights Act.
The citizenship question
would mirror one that is already on the bureau’s annual
American Community Survey,
which doesn’t reach as wide a
segment of the population. It
asks whether a person is a citizen by birth or by naturalization or isn’t a citizen. It
doesn’t ask about the legality
of an immigrant’s presence.
The Justice Department
asked in December that the
question be added to the census, saying it needed “a reliable calculation of the citizen
voting-age population” in communities where voting-rights
violations were suspected. Existing ACS citizenship data
can’t be used for that purpose,
it said, because the data aren’t
calculated on the same schedule or with the same precision
as census data.
“This is something that has
been part of the census for decades,” White House press secretary Sarah Huckabee Sanders
said Tuesday.
The census queried Americans about their citizenship
from 1820 to 1950. The citizen-
ship question was left off the
1960 census probably to make
room for new questions, said
Margo Anderson, a University
of Wisconsin professor who
has studied the history of the
census. Tighter immigration
curbs starting in the 1920s left
fewer noncitizens by then, she
said.
Civil rights groups and minority advocates said the question would dissuade immigrants,
particularly
noncitizens, from answering
the census altogether, resulting in undercounts of these
populations.
The census aims to count
every resident regardless of legal status. About half of the 44
million immigrants are U.S. citizens, according to ACS data.
Of those who aren’t, about half
are unauthorized immigrants,
according to separate estimates made by the Pew Research Center and the Department of Homeland Security.
The federal government relies on census tallies to allocate congressional seats, craft
poverty guidelines and distribute billions of dollars in
funding for programs like
Medicaid.
With Republicans in control of Congress, lawmakers
and legal experts said they expect court challenges to become a priority for opponents.
State attorneys general argue that adding the question
would hinder the Voting
Rights Act by causing a population undercount that would
disproportionately
harm
states and cities with large
immigrant communities.
Regardless of the ultimate
legal outcome, a court challenge could put the question
in legal limbo long enough to
make adding it practically impossible given the lead time
needed to print materials and
program census software.
U.S. WATCH
ECONOMY
Consumer Confidence
Falls as Stocks Swing
U.S. consumer confidence declined in March, dragged down
by consumers’ perception of current and future economic conditions in light of recent stockmarket gyrations.
The Conference Board said
Tuesday its measure of U.S. consumer confidence decreased to
127.7 in March from an 18-year
high of 130.0 in February.
“Consumers’ short-term expectations also declined, including their outlook for the stock
market, but overall expectations
remain quite favorable,” said
Lynn Franco, director of economic indicators at the Conference Board.
This month, the present situation index fell to 159.9 from
161.2 in February; the expectations index dropped to 106.2 in
March from 109.2 last month.
—Sarah Chaney
CORRECTIONS AMPLIFICATIONS
In 1986, the Soviet Union
dismissed 260 local employees
of the U.S. embassy in Moscow.
A World News article on Tuesday about past U.S. actions
against Russian officials incorrectly said the U.S. dismissed
the employees.
Citigroup Inc. sold its fixedincome analytics and index businesses to London Stock Exchange Group PLC in 2017. A
Markets & Finance article on
Saturday about Chinese bonds
incorrectly said Citigroup operates a major fixed-income index.
The daily Corporate Borrowing Rates and Yields table,
published Tuesday through
Saturday, incorrectly listed the
performance of the 10-year
Treasury note’s price in the
column labeled 52-week total
return for the 10-year Treasury total return index from
June 16, 2011, until March 21,
2018. The weekly Corporate
Borrowing Rates and Yields
table that is published on
Mondays wasn’t affected by
the error. Historical data for
the 52-week total return for
the 10-year Treasury total return index aren’t available.
In mid-March, the Trump
administration was putting together a package that included
tariffs on Chinese imports valued at around $30 billion. A
World News article on March 16
in one reference incorrectly said
the proposed tariffs totaled at
least $30 billion.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
CRIME
Man Charged Over
Suspicious Packages
A Seattle area man suspected
of sending suspicious packages to
multiple government agencies
and military installations around
the nation’s capital was charged
Tuesday with shipping explosive
materials.
Thanh Cong Phan, 43 years
old, of Everett, Wash., made his
initial appearance Tuesday in federal court in Seattle. Ashwin Cattamanchi, a public defender representing Mr. Phan, declined to
comment on the case when
reached by phone.
Eleven suspicious packages
were received through the U.S.
Postal Service at various government agencies and military instal-
lations in the Washington, D.C.,
area, according to the complaint.
Each package contained what
appeared to be a homemade explosive device in a small glass
bottle with an unknown black
power with a fuse, the complaint
says. It also contained a typewritten letter with “ramblings about
neuropsychology, mind control,
and other subjects including terrorism.”
No packages exploded or
caused injuries, the U.S. Attorney’s Office in Seattle said.
One package sent to the FBI’s
mailing facility was tested by FBI
bomb technicians. They confirmed
it tested positive for an ingredient
found in a low explosive powder
known as double base smokeless
powder, which could be detonated
or explode when confined.
—Associated Press
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
Published daily except Sundays and general legal holidays.
Periodicals postage paid at New York, N.Y., and other mailing offices.
Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020.
All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of
which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of
the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.
Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat
REPRINTS & LICENSING
By email: customreprints@dowjones.com; By phone: 1-800-843-0008
GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | A3
* * * * *
U.S. NEWS
Nassar’s Ex-Boss Faces Sex Charges
Former dean accused
of soliciting sex from
students, failing to
supervise doctor
William Strampel, the former dean of Michigan State
University’s College of Osteopathic Medicine and longtime
boss of convicted sexual
abuser Larry Nassar, was
charged Tuesday with counts
including criminal sexual conduct and neglect of duty, according to court filings.
The charges stem in part
from allegations by female
students at the school, who
told investigators that Dr.
Strampel used the power of
his office to proposition them
for sexual acts, grope them
and harass them, according to
an affidavit filed Tuesday in
Michigan state court.
The charges also relate to
Dr. Strampel’s alleged failure
to supervise Dr. Nassar, allowing him to see and abuse patients while under investigation for sexual misconduct
and for two years afterward.
Dr. Strampel, 70 years old,
was arrested Monday. The
charges filed Tuesday in a
Michigan district court in
East Lansing include one
count of fourth-degree criminal sexual conduct using force
PAUL SANCYA/ASSOCIATED PRESS
BY MELISSA KORN
AND REBECCA DAVIS O’BRIEN
William Strampel appearing on a monitor during his video arraignment Tuesday in East Lansing, Mich. His bond was set at $25,000.
or coercion and two misdemeanor counts of willful neglect of duty by a public officer.
He is also facing a felony
charge of misconduct of a
public official, which carries
up to five years in prison.
Dr. Strampel was arraigned
Tuesday afternoon, with bond
set at $25,000, and wasn’t
asked to enter a plea.
John Dakmak, a lawyer for
Dr. Strampel, didn’t respond
to a request for comment.
In court, he said Dr. Stram-
pel “is not a threat to the
public at large.”
The Michigan Attorney
General’s office seized Dr.
Strampel’s computer in early
February, as part of its investigation into the school’s handling of complaints against Dr.
Nassar, according to the affidavit.
On the computer, investigators found approximately 50
photos of “bare vaginas, nude
and seminude women, sex
toys, and pornography,” the
affidavit says.
NASA
Delays
Telescope
Program
New York Looks
To Traffic Fee to
Break Gridlock
Congestion in the U.S.’s
largest cities is only getting
worse, and as municipal leaders search for solutions, the
idea of charging vehicles to
enter high-trafficked zones is
gaining momentum.
In New York, Gov. Andrew
Cuomo has proposed imposing
a fee on vehicles entering Manhattan’s central business district as a way to help fund the
city’s faltering subway system.
State lawmakers, currently
wrangling over a budget that is
due April 1, could inch New
York toward some form of congestion pricing—though a proposal failed the last time it was
pitched in 2008.
Transit leaders in cities such
as Seattle, San Francisco, Los
Angeles and Portland, Ore., are
watching with interest.
“All eyes are on New York,”
said Tilly Chang, a transit executive in San Francisco, which
came close to implementing
congestion pricing in 2010.
While each city has its own
challenges, their traffic problems are similar: Growing populations and a booming economy have swelled the ranks of
workers, putting more cars on
the road. In central business
districts, construction chokes
off streets while an increase in
bus and bike lanes further reduces space for cars.
Meanwhile, the rapid growth
of app-based ride-hailing services has led to more vehicles
circling the busiest areas. Between 2013 and 2017, even as
yellow-taxi trips plummeted,
the number of for-hire vehicles
in Manhattan’s central business
district more than doubled dur-
ing the afternoon rush hour, according to a report from Bruce
Schaller, a congestion expert.
Over the same period, traffic
problems have become significantly worse: Average taxi
speeds in Manhattan’s core fell
to 4.7 miles an hour in 2016,
from 6.7 miles an hour in 2012,
according to the city’s Transportation Department.
Transit officials say a combination of increased traffic,
lower-cost technology, and a
political moment in which people are more willing to pay to
use certain roads has given the
congestion-pricing movement
some tailwind.
John Raskin, executive director of Riders Alliance, a
transit advocacy group in New
York, said that Manhattan’s
central business district can’t
cope with more vehicles and
that improving mass transit is
the only way the region’s economy can continue growing.
“The status quo is not a viable alternative,” he said.
London implemented a congestion charge in 2003. The
program was initially successful, reducing traffic congestion
by 30%. But levels have climbed
in recent years.
A recent report by the TriState Transportation Campaign, a New York-based transit advocacy group, noted that
a reduction in road capacity as
a result of pedestrian, cycle
and bus priority measures has
contributed to London’s congestion. Another factor is private hire vehicles, including
ride-hailing companies, which
are exempt from the fee. The
largest ride-hailing player,
Uber Technologies Inc., which
is fighting to keep its London
BY ANDY PASZTOR
DREW ANGERER/GETTY IMAGES
BY PAUL BERGER
Between 2013 and 2017 the number of for-hire vehicles in Manhattan’s central business district
more than doubled during the afternoon rush hour even as trips by yellow cabs fell sharply.
Other Cities Weigh
Congestion Pricing
Officials in other cities say
that if New York’s governor is
successful and if congestion
pricing works in New York, it
could accelerate their own
plans.
“We could point to a major
urban area like ours that did
something that’s successful,”
said Hasan Ikhrata, executive
director of the Southern California Association of Governments, a metropolitan planning group. Mr. Ikhrata’s group
is studying proposals for congestion pilot programs in
parts of downtown and West
Los Angeles.
A bill in the legislature pro-
poses setting up four congestion-pricing pilot plans. If it
passes, observers expect the
pilots to target areas in and
around San Francisco and Los
Angeles.
In Seattle, the city council
approved $200,000 for the
Transportation Department to
study what congestion pricing
could look like and how it
might affect motorists in the
downtown area. The study is
expected to be completed by
the end of the year.
In Portland, Ore., City
Commissioner Dan Saltzman
said city and state officials
are working on plans to implement a toll on two interstates starting from a point
10 miles south of the city and
stretching to the border with
Washington.
Traffic Jam
Average taxi speeds
in New York City
Midtown*
10 miles per hour
Manhattan,
60th Street
and below
8
6
4
2
0
2010 ’11 ’12 ’13 ’14 ’15 ’16
*Midtown is from 59th Street to 35th
Street between Ninth Avenue and the East
River
Source: Fix NYC Advisory Panel Report
THE WALL STREET JOURNAL.
license, has 40,000 drivers in
the capital.
Since Mr. Cuomo suggested
last summer that congestion
pricing was “an idea whose
time has come,” he has sought
to lower expectations. He is
now pushing a phased congestion-pricing approach based
loosely on proposals submitted by a panel he commissioned last fall.
The panel suggested congestion pricing could raise $1
billion annually for the statecontrolled Metropolitan Transportation Authority. It also recommended a surcharge of
between $2 and $5 on ride-hailing and taxi trips. Eventually,
the plan envisions a fee of
$11.52 for cars and $25.34 for
trucks entering the most heavily
congested parts of Manhattan.
—Mike Vilensky
and Wiktor Szary
contributed to this article.
Adelson Aided Israeli Firm Before Its EPA Deal
BY TIMOTHY PUKO
The Environmental Protection Agency has signed a deal to
test technology from an Israeli
company whose executives
were twice granted access to
EPA chief Scott Pruitt at the request of Republican Party donor
and casino magnate Sheldon
Adelson.
The EPA agreed to test a water-purification system developed by Water-Gen Ltd., an Israeli technology company
whose board includes Harvard
legal scholar and television pundit Alan Dershowitz. The company says its technology produces drinkable water out of
vapors in the air, and the EPA is
seeking to test how useful the
technology would be during
shortages and contaminations,
the agency said.
The deal comes after the
company’s executive chairman,
Maxim Pasik, met with Mr.
Pruitt at the EPA’s headquarters
at least twice in the spring of
2017, according to the administrator’s calendar released by the
agency’s Freedom of Information Act office.
“This came as a request of
Sheldon Adelson,” reads a note
on the entry for their first
meeting on March 29, 2017. The
entry says that Yehuda Kaploun,
president of Water-Gen USA,
also attended.
Mr. Adelson, the chief executive of Las Vegas Sands Corp.,
a casino operator and global entertainment company, is also a
major donor of President Donald Trump and the Republican
Party. He invested millions of
Also on the work computer
were pornographic videos and
a video of Dr. Nassar performing “treatment” on a young female patient, according to the
affidavit. More than 250
women have alleged that Dr.
Nassar sexually abused them
under the guise of medical
treatment.
Dr. Nassar, who worked at
Michigan State University for
nearly two decades and served
as a volunteer team doctor for
the U.S. women’s national
gymnastics team, long defended his techniques as legitimate medical treatment, but in
his guilty plea on state sexualabuse charges last year, Dr.
Nassar said he performed the
“treatments” for his sexual
gratification.
The charges against Dr.
Strampel come as media and
law enforcement have been
looking into the culture and
possible misconduct at the
school of osteopathic medicine
during Dr. Strampel’s 15-year
tenure.
The inquiries stem, in part,
from allegations that the university, and in particular Dr.
Nassar’s direct colleagues,
didn’t do enough to prevent
Dr. Nassar from abusing patients.
Interim President John Engler said Tuesday that the university would continue to cooperate with all official
investigations related to sexual
assault or other misconduct.
dollars in an outside group
backing Mr. Trump in the crucial final weeks of the 2016
election, and he had stayed in
close touch with the president.
A multibillionaire, Mr. Adelson also has deep ties to Israel,
The agency agreed
to test a waterpurification system
from Water-Gen.
even offering to help pay for a
new U.S. embassy in Jerusalem.
Mr. Adelson declined to comment. A person close to Mr.
Adelson said he has no financial
interest in Water-Gen.
The EPA regularly signs similar deals with research institutions, corporations, or other institutions, to gain access to new
technology that might be useful
to the agency’s mission.
In August, the agency announced it wanted as many as
four partners from outside the
federal government to help it
study the use of “atmospheric
water generators.” The agreement is called a Cooperative Research and Development Agreement, and the agency signed
one with Water-Gen in January
to test its GEN-350 system.
In a press release late Tuesday, the EPA didn’t say why the
agency was announcing the deal
weeks after it was signed or
whether it was still seeking
other partners.
Water-Gen’s connections ap-
pear to go high up in Israel. Michael Mirilashvili, Water-Gen’s
president, is reportedly a Russian-Israeli billionaire with a
leadership position in the World
Jewish Congress. His name has
surfaced in Israeli media reports as among those questioned by police investigators
into a corruption scandal that
has rocked the government of
Israel’s ruling coalition.
The company’s website touts
Israeli Prime Minister Benjamin
Netanyahu bragging about the
technology at an event. It “improves on Moses,” Mr. Netanyahu said in a video posted by
the company. “He brought water from Iraq. They bring water
from thin air.”
—Julie Bykowicz
and Louise Radnofsky
contributed to this article.
NASA announced a roughly
one-year launch delay for the
James Webb Space Telescope,
blaming some of the setbacks
plaguing its premier spacescience program on “avoidable errors” by prime contractor Northrop Grumman Corp.
The
multibillion-dollar
project, beset by busted
schedules and cost overruns
stretching back to the start of
the decade, now is slated to
launch around May 2020
rather than the previously
announced June 2019.
During a media briefing on
Tuesday, top agency officials
attributed part of problem to
factory slipups such as valves
damaged by an improper solvent or a heater that was
mistakenly overstressed and
needed to be replaced.
To prevent further delays,
senior National Aeronautics
and Space Administration officials laid out an unusually
stringent oversight plan—including personnel changes
and mandated twice monthly
updates by senior Northrop
Grumman management. The
goal is to gain more insight
and assert greater control regarding the company’s work.
“We’re reviewing technical
processes and procedures at
Northrop Grumman to assure
mission success,” said Dennis
Andrucyk, deputy associate
administrator in NASA’s science-mission division.
His boss, Thomas Zurbuchen, said, “We have only one
shot to get this right” before
launch, because “we want
this to work well in orbit.”
The move also likely sets
up a congressional debate
over reauthorizing the trouble-plagued program, and ripples could affect the timing
of other astrophysics projects
being planned in the U.S. and
overseas.
Many of those projects
partly depend on data anticipated from the James Webb
platform.
Before the briefing, a Northrop Grumman spokesman
released a statement indicating the company “remains
steadfast in its commitment
to NASA and ensuring successful integration, launch
and deployment.”
Afterward, the company
declined to elaborate.
Even with a program in
crisis, it is uncharacteristic
for NASA to take such a public stance attributing some
problems to design issues
that initially weren’t recognized by agency managers
but also pinpointing factoryfloor errors.
.
A4 | Wednesday, March 28, 2018
P
W
L
C
10
11
12
H
T
G
K
B
F
A
M
1
2
3
4
5
6
7
8
9
O
I
X
X
****
THE WALL STREET JOURNAL.
U.S. NEWS
California Meets ‘Sanctuary’ Resistance
Orange County joins
others opposing limits
on cooperation with
immigration authorities
SANTA ANA, Calif.—Orange
County officials on Tuesday
voted to condemn parts of California’s immigration approach, aligning themselves
with the Trump administration as the state increasingly
stakes out an opposing role.
At a packed public hearing,
the county’s board of supervisors—all
Republicans—also
voted to support a federal lawsuit against California’s socalled sanctuary-state law,
which limits when and how local
authorities can cooperate with
federal immigration authorities.
Supervisor Lisa A. Bartlett
said the goal of opposing the
sanctuary law was to keep the
county safe. “One of the most
important things we must not
do is to reward bad behavior,”
she said. “If they are undocumented and committing crimes,
they need to be deported.”
The move came days after
another municipality in the
conservative-leaning county,
the small city of Los Alamitos,
approved an ordinance to opt
out of the sanctuary-state law
and pointed to the fissures in
California’s battle with the
JEFF GRITCHEN/THE ORANGE COUNTY REGISTER/ASSOCIATED PRESS
BY ALICIA A. CALDWELL
AND IAN LOVETT
Protesters on Tuesday outside the Orange County Board of Supervisors, which aligned with the Trump administration on immigration.
Trump administration over
immigration and other issues.
For months now, the Democratic-led state has positioned
itself as an adversary to President Donald Trump’s hard-line
immigration policies, seeking
to stymie the administration.
California’s Democratic Attorney General Xavier Becerra has
filed suit against the government multiple times, challenging policies ranging from immigration to the environment.
U.S. Attorney General Jeff
Sessions, in turn, filed suit
against California this month,
challenging the state’s immigration laws. The legal salvo
elevated the feud and has
drawn support from more
than a dozen other states and,
now, a growing number of California jurisdictions.
Officials in two conservative-leaning Northern California counties and the city of
Anderson this year declared
their jurisdictions were “nonsanctuary” areas of the state.
Mr. Becerra on Tuesday
didn’t respond to requests for
comment about the moves by
Orange County and Los Alamitos. The most vocal opposition
in the state so far has come
from Orange County, a wealthy
coastal county and longtime Republican stronghold with a
growing Democratic presence.
Hillary Clinton won the county
in the 2016 presidential election.
Though Democrats are optimistic about their chances of
sweeping the area’s four congressional seats in the 2018
midterm elections, city and
county leaders aren’t going
quietly. The city council in Orange County’s Yorba Linda
voted this month to join the
federal government’s lawsuit
against California and file an
amicus brief. Mayor Gene Hernandez said the broad statesanctuary policy was “an over-
reach on the part of the state.”
Orange County Sheriff Sandra Hutchens said Monday
that her office would now post
release dates for anyone held
in its jail, regardless of immigration status. Doing that allows Immigration and Customs
Enforcement officers to know
when a wanted immigrant is
to be released from jail. The
move evades the sanctuary
law’s limits on which information local authorities can share
with federal immigration authorities because it is being
shared with the general public.
“My department…remains
committed to cooperating fully
with federal authorities in all
areas where I have discretion
to remove serious criminals
from our community,” Sheriff
Hutchens said.
The governing board in Los
Alamitos approved its opt-out
measure 4-1. Mayor Troy Edgar said the city is also planning to file an amicus brief in
support of the federal government’s lawsuit.
Mr. Edgar said last week’s
vote was less about worries
concerning illegal immigration
in his city than a message to
state lawmakers.
“I just think the state overstepped its boundary,” Mr. Edgar said. “This type of issue
should be dealt with by the U.S.
government…and not the state.”
Canadian policy yields a labor
shortage........................................ A7
Zuckerberg Is Expected to Testify
Real-estate investment trusts are starting to feel Libor’s impact.
FUNDS
Continued from Page One
other commercial buildings
that generate income, are starting to feel the impact. They
tend to borrow more than
some other investment vehicles, and about 15% of their
borrowing is floating-rate debt
typically tied to Libor, according to Deutsche Bank estimates.
Floating-rate debt can be
cheaper when rates are particularly low but subject to sudden
increases as they rise.
Executives at REITs, including UDR Inc. and Ventas
Inc., projected last month
that a rise in Libor would
dent earnings in 2018. UDR
said higher Libor and other
noncore items shaved 1 cent a
share from this year’s expected funds from operations,
a measure of income, which is
forecast to have a midpoint of
$1.93 a share.
Across the industry, executives are tallying the costs.
A quarter-point increase in
Libor amounts to “a $10 million to $15 million interestcost lift for us,” James Taiclet
Jr., chief executive of American Tower Corp., a wireless
and broadcast-communications real-estate firm, said at
an industry conference this
month.
The average cost for nonfinancial corporations to borrow in the commercial-paper
market for 90 days has more
than doubled over the past
year. It is now at 1.95%, according to Fed data. The level
C
Celestino
Custom Tailor
BESPOKE
(212) 203-8254
New York City
BY APPOINTMENT
“Where tailoring is an art”
JTAILORCONTRERAS@GMAIL.COM
of outstanding commercial
paper—a type of short-term
loan used by corporations—is
up 10% from a year earlier,
Fed data show.
Holders of roughly $1.2
trillion in consumer mortgages that are pegged to a
form of Libor stand to pay
more, too, while rates on
some other types of consumer
debt, such as private student
loans, are also likely to move
higher.
“It’s starting to squeeze
people who took on too much
debt during this long economic expansion,” said Mr.
Rupkey of MUFG.
Financial conditions for
consumers and businesses
were recently at their tightest
levels in nearly a year, according to an index kept by
the Federal Reserve Bank of
Chicago, due to factors such
as stock-market declines and
the rise in Libor.
Investors say Libor’s rise is
contributing to nervousness
in financial markets. The Dow
Jones Industrial Average sank
5.7% last week, pushing the
index to its lowest level since
November. Stocks rebounded
Monday, with the blue-chip
index surging 669 points, but
fell 345 points Tuesday.
Demand for dollars at the
end of the first quarter could
send Libor up an additional
0.2 percentage point in coming days, market analysts say,
as investors rebalance portfolios and banks rein in their
balance sheets. The end of
March also marks the finish
of Japan’s fiscal year, potentially compounding the moves
as big investors bring money
back to Japan.
Libor has already sprinted
ahead of the rates indicated
by central-bank policies, an
acceleration that has baffled
economists and traders. That
widening gap has alarmed
those who watch it as a signal
of stress in the financial system.
While other markets that
can be tapped for dollars—including the swaps market and
liquidity lines maintained by
global central banks—aren’t
showing a big dollar squeeze,
the rise in Libor has some investors on edge.
“I think the market is underestimating the squeezing
of money out of the world,
particularly in dollar terms,”
said Robert Savage, chief executive of hedge fund
CCTrack Solutions.
Facebook Inc. Chief Executive Mark Zuckerberg is planning to testify before Congress
about the way the Silicon Valley giant manages its users’
data, people familiar with the
matter said Tuesday.
It would mark Mr. Zuckerberg’s first public testimony before U.S. lawmakers. Mr. Zuckerberg, who has rarely strayed
beyond carefully managed public appearances, now is resigned to the fact that he will
have to testify, the people said.
Mr. Zuckerberg hasn’t formally accepted any requests for
him to appear. In an interview
with CNN last week, he said he
would be open to testifying if
he was the “right person” to do
so.
Earlier this month, Facebook
disclosed that information
about tens of millions of its users was sold to data-analytics
firm Cambridge Analytica,
which worked with the Trump
campaign in 2016 and other Republican candidates.
The episode shed light on
how little Facebook has invested in ensuring developers
follow its rules. Selling user
data violates Facebook policies.
Cambridge Analytica has said it
TECH
Continued from Page One
while 37 state attorneys general are also demanding explanations for its practices.
Other social-media stocks
also suffered, including Twitter, which fell 12% Tuesday after short-selling research firm
Citron Research said that the
social network was the most
vulnerable to privacy regulation and that it was shorting
shares of Twitter.
In a tweet, Twitter said it is
“public by its nature. Tweets
are viewable and searchable
by anyone.”
The S&P’s worst performer
was chip maker Nvidia Corp.,
which said it would temporarily halt testing of its driverless-car technology on public
roads following the fatal crash
of an Uber Technologies autonomous vehicle in Arizona.
Nvidia shares fell 7.8%.
Moody’s Investors Service
also downgraded Tesla Inc.
on Tuesday, pushing the car
maker’s debt deeper into junk
territory as it bets heavily on
ramping up production on its
Model 3 sedan. The National
Transportation Safety Board
dispatched two investigators
to examine last week’s fatal
crash of a Tesla electric car in
Northern California and determine whether the vehicle’s
autopilot system was engaged. Tesla shares plunged
8.2%.
After powering the market
higher in 2017, tech’s dominance continued into this year.
followed Facebook policies.
On March 21, after days of
silence on the matter, Mr. Zuckerberg announced a series of
steps meant to rein in outsiders’ access to Facebook user
data.
The news intensified political pressure on Facebook,
which was already under fire
for failing to detect Russianbacked manipulation of its platform and for allowing fabricated news articles, violent live
videos and other forms of objectionable content spread
across its services.
Congressional aides who
were briefed by Facebook staffers last week said the meetings
left some 60 questions unanswered. Facebook officials
promised to answer them at a
later date, including whether
firms other than Cambridge
Analytica mishandled user data.
Lawmakers want to know
whether there are more copies
of underlying Facebook user
data. Facebook officials have
said it is possible but they
aren’t sure. Mr. Zuckerberg, in
a later interview with The Wall
Street Journal, reiterated that
Facebook would seek to identify bad actors but wouldn’t be
able to uncover where all the
data ended up and how it is be-
ing deployed.
On Monday, the Senate Judiciary Committee asked Mr.
Zuckerberg to appear at an
April 10 hearing on data privacy. Committee Chairman
Chuck Grassley (R., Iowa) also
invited Sundar Pichai, chief executive of Alphabet Inc.’s
Google, and Twitter Inc. Chief
Executive Jack Dorsey.
Last week, bipartisan leaders
of the House Energy and Commerce Committee and Senate
Committee on Commerce, Science and Transportation separately called on Mr. Zuckerberg
to testify about Facebook’s privacy and data-use standards.
Shares of Amazon Inc., Netflix
Inc. and other tech heavyweights were major contributors to the S&P 500’s January
run-up. Tech stocks swelled to
25% of the S&P 500 stock index at the end of February, the
highest percentage since the
months after the dot-com bubble burst in 2000, according to
data provider Morningstar Inc.
Now, mounting troubles at
Facebook and Uber are clouding the industry’s outlook. The
entire group has come under
scrutiny, especially after valuations have risen to their most
expensive levels since just before the financial crisis last decade and volatility has increased. The Nasdaq’s 2.9%
decline on Tuesday marked the
ing to get more intimately involved with our friends on the
West Coast”—the big tech
firms, said Steven Chiavarone,
assistant vice president and
portfolio manager at Federated Investors. If tech companies “do stupid things and invite governments to regulate
them more heavily, I won’t
know what that company is
worth, but it’ll be less.”
It is a sharp reversal for a
corner of the market that only
a couple of months ago had
been a reliable generator of
big returns and a key factor
behind major stock indexes’
strong run last year.
Despite the recent declines,
many investors continue to
like the FAANG stocks and the
broader tech industry. The
sector is one of just two—the
other being consumer discretionary stocks, which includes
shopper favorites like Macy’s
Inc. and Best Buy Co.—to eke
out a small gain so far this
year. Investors also continue
to move massive sums of
money into those stocks, lending some support. They put
roughly $1.4 billion into technology exchange-traded funds
so far in March, according to
Morningstar.
Investor activity in the options market also indicated
that some investors may be
positioning for an eventual
tech rebound. An options
gauge that measures the cost
to protect against declines in
PowerShares QQQ Trust, a
tech-heavy exchange-traded
fund, remains at low levels,
Trade Alert data show. That
suggests investors may not be
Mounting troubles at
Facebook and Uber
are clouding the
outlook for the sector.
fourth straight daily move of
at least 2%, the longest such
stretch since October 2011.
Shares of Facebook, Amazon, Apple Inc., Netflix and
Google parent Alphabet Inc.,
commonly known by the acronym FAANG, have lost more
than $260 billion in total market value over the past week
and a half, as investors worry
about the potential ramifications of new, costly regulations on those companies and
others in the tech sector.
“Washington has been itch-
A congressional aide with
knowledge of the matter said
Mr. Zuckerberg is expected to
testify in front of the House Energy and Commerce Committee
next month.
A spokeswoman for the
House Energy and Commerce
Committee said it is working
with Facebook “to determine a
day and time for Mr. Zuckerberg to testify.” A representative for the Senate Judiciary
Committee declined to comment beyond the announcement Monday. A spokesman for
the Senate Commerce Committee couldn’t be immediately
reached.
DAVID PAUL MORRIS/BLOOMBERG NEWS
SCOTT EELLS/BLOOMBERG NEWS
BY DEEPA SEETHARAMAN
Mr. Zuckerberg rarely strays beyond carefully managed appearances.
paying up to hedge against
tech declines.
The ratio of bearish options
to bullish contracts on QQQ
also remained below average
Tuesday, Trade Alert data
show.
“We haven’t eliminated any
of our bets,” said Darren Bagwell, director of equity research and portfolio manager
at Thrivent Financial. “We
continue to have significant
exposure to the FAANG stocks,
and we continue to feel like
those are the best relative values in the market.”
Still, even investors like Mr.
Bagwell admit the nearer-term
outlook is murkier, likely stirring anxiety among those investors who bought shares of
Facebook, Alphabet and others
before the recent pullbacks.
Flows into the biggest tech
ETF showed signs of cracking,
as investors pulled $1.2 billion
from the Technology Select
Sector SPDR exchange-traded
fund during the February selloff, its heaviest month of outflows since October 2014, according to Morningstar.
The fund has 31% of its
portfolio in shares of Apple,
Facebook and Alphabet. Apple
is its largest holding, at 14%.
The fund has seen $288 million in outflows in the past
week, according to FactSet.
“We’re very nervous about
what those stocks are going to
do over the next six months,”
Mr. Bagwell said. “These have
been easy trades for a long
time. This makes it very difficult to trade those names.”
—Asjylyn Loder
contributed to this article.
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | A5
THE RALPH LAUREN 867 TIMEPIECE
ralphl auren.com
.
A6 | Wednesday, March 28, 2018
* ***
THE WALL STREET JOURNAL.
WORLD NEWS
Asia Fears Fallout in U.S.-China Trade War
Producers across
region are pressed,
even in countries
sympathetic to Trump
From Japan’s electronics to
Australia’s iron ore, the AsiaPacific region’s economies depend on selling parts and materials to feed China’s export
machine.
By Ben Otto in Jakarta,
Rhiannon Hoyle in
Sydney and Chieko
Tsuneoka in Tokyo
That is why the prospect of
a deepening U.S.-China trade
conflict has these nations worried about getting caught in
the crossfire—even if some of
them have sympathy for President Donald Trump’s criticism
of China.
“It’s not just the combatants
themselves who suffer damage,
it’s the other countries too,”
said Shujiro Urata, a professor
of economics at Tokyo’s
Waseda University and former
World Bank economist.
Stocks have been gyrating on
trade news, with Japan’s benchmark index rising 2.65% Tuesday on signs that the worst scenario of a trade war might be
avoided. Chinese and American
officials have quietly started
negotiating on ways to improve
U.S. access to China’s markets
and reduce the trade deficit.
Global supply chains mean it
doesn’t take much for U.S. tariffs against China, or Chinese
retaliation against U.S. goods,
to ripple across the region. Mr.
Trump last week imposed tariffs of 25% on steel from China
and other nations, while exempting some U.S. allies, and
threatened to impose tariffs
hitting as much as $60 billion
in Chinese imports.
That raised alarms in Australia, which sends 30% of its
exports to China. Each year’s
exports include some 700 mil-
Dependent Relationships
Asia-Pacific nations rely more on exports to China than the U.S. does.
Share of exports* going to China, latest annual data
30%
Australia
22
South Korea
15
Japan
14
Indonesia
U.S.
8
*Includes goods and services
Note: U.S. and Indonesia data for 2017; Australia for year through June 2017;
Japan and South Korea for 2016
THE WALL STREET JOURNAL.
Source: official statistics of each country
lion metric tons of iron ore
and metallurgical coal, the
main ingredients in steel, as
well as copper for electronics.
“Any time there is the risk of
the escalation of a trade war or
tit-for-tat tariff increases, that
has the potential to damage
our economy very substantially,” said Jim Chalmers, an
Australian lawmaker from the
opposition Labor Party.
Some of the effects of U.S.-
China trade tension are already
being felt. In January, Mr.
Trump said he would place tariffs of up to 30% on solar panels, a measure aimed primarily
at Chinese makers whose lowprice panels have gained global
market share. The move hurt
some other panel makers such
as the Singapore factory of REC
Solar Holdings AS, which runs
one of the largest solar cell factories outside of China and sent
almost a third of its panel shipments through the first three
quarters of 2017 to the U.S.
“Because Singapore also
makes solar panels, we also
become collateral damage,”
Foreign
Minister
Vivian
Balakrishnan of Singapore said
this month. He told a forum
last week that a cycle of retaliation would “undo the formula
for peace and prosperity that
has worked for 70 years.”
The recent trade tensions
have driven up the value of
the Japanese yen, seen as a
haven in times of turmoil, to
its highest level against the
dollar since around the time of
Mr. Trump’s election. That is
hurting Japanese exporters of
electronics parts.
The ripple effects aren’t all
bad for Asian nations.
If iPhones made by Apple
Inc. contractors in China suffer from the trade conflict—
still an open question—Vietnam could benefit because it
is a major production base for
Samsung Electronics Co.,
whose phones are the leading
competitor to the iPhone.
Meanwhile, China might
buy more from the region if it
follows through on its threat
to retaliate against American
products. Action against
American soybeans, for example, could lift demand for substitutes such as palm oil products, a major source of exports
for Malaysia and Indonesia.
“It’s very early days and it
remains to be seen how this
‘trade war’ plays out,” said
Hak Bin Chua, economist at
Maybank Kim Eng in Singapore. “Higher tariffs on Chinese cars, for example, could
boost Japanese and German
car exports,” he said, but U.S.
tariffs on Chinese consumer
electronics would likely have a
negative impact on Singapore
and Malaysia, as “the two [Association of Southeast Asian
Nations] countries most
plugged into the electronics
supply chain.”
Continued from Page One
the appropriate atmosphere
for dialogue with North Korea.” China had briefed the
White House on Tuesday
about the North Korean
leader’s trip, it said.
Mr. Kim told Mr. Xi that
Pyongyang is committed to denuclearizing the Korean Peninsula and is willing to start dialogue with the U.S. and hold a
North Korea-U.S. summit, the
Chinese government-run Xinhua News Agency said.
The agency said Mr. Kim’s
trip spanned Sunday to
Wednesday, though foreign
diplomats say the North Korean leader appeared to have
been in Beijing only from
Monday to Tuesday.
“It is our consistent stand
to be committed to denuclearization on the [Korean] peninsula,” Xinhua quoted Mr. Kim
as saying. The issue “can be
resolved, if South Korea and
the U.S. respond to our efforts
with goodwill.”
Beijing labeled Mr. Kim’s
trip an “unofficial visit,” even
though it featured the pomp
and ceremony accorded to foreign leaders on official visits,
including a review of honor
guards and a banquet at the
Great Hall of the People. North
Korean state media said Mr.
Kim invited Mr. Xi to pay a reciprocal visit.
Mr. Kim is seeking to enlist
Beijing’s influence to pressure
the U.S. into taking a more
flexible stance, regional security experts say.
Mr. Bolton, the newly
named U.S. national security
adviser, has argued for preemptive strikes and called for
North Korea to give up its
atomic arms immediately. The
North Korean leader, according to those who study the regime, will likely seek a longerterm agreement, in which
North Korea gets security and
YAO DAWEI/XINHUA/ASSOCIATED PRESS
KOREA
China’s Xi Jinping, fourth from left, and North Korea’s Kim Jong Un, second from right, at the Great Hall of the People in Beijing, where visiting leaders are often welcomed.
economic guarantees now in
exchange for freezing nuclear
tests and dismantling its
weapons program over time.
“The stakes were raised,
and it must have become clear
that the summit could go very
badly,” said Ken Gause, a senior North Korea analyst at
CNA, a think tank based in Arlington, Va. “Kim Jong Un
needs to be sure that China
has his back.”
Rumors that Mr. Kim might
be visiting Beijing circulated
through diplomatic circles after Japanese media reported
Monday that a high-ranking
North Korean official may have
arrived in the Chinese capital
on a special train. Witnesses
saw a long motorcade speeding
through the city and there was
heavy security around the official state guesthouse.
Since its founding as a Soviet-backed satellite after
World War II, North Korea has
proven adept at playing great
powers against one another to
extract advantages and ensure
its survival. Mr. Kim’s grandfather, who founded the dynastic dictatorship, pivoted between Beijing and Moscow to
ensure his aid-dependent regime wasn’t completely beholden to either.
China has long been North
Korea’s only treaty ally and
largest trade partner. But that
relationship has soured as Beijing has stepped up enforcement of sanctions, which
economists say are starting to
bite North Korea’s economy.
Mr. Kim declined to meet a
Chinese envoy who had recently visited Pyongyang.
“Right now they are focused on getting relief on
sanctions and getting the
economy in shape,” said Go
Myong-hyun, a North Korea
specialist at the Asan Institute
for Policy Studies in Seoul.
Until this week, North Korea’s 30-something, third-generation leader wasn’t believed
to have left his country since
taking power in 2011, nor to
have met another world leader.
Several foreign-affairs analysts
said they expect North Korea
to send a delegation to Moscow in the coming weeks.
Beijing had been largely
sidelined during weeks of diplomacy on the Korean Penin-
sula. In hosting a high-level
North Korean delegation, China
may be reminding the U.S. and
its allies that it still plays an
indispensable role, said diplomats and analysts in China.
“China has been kind of
marginalized, and it was inevitable the Chinese would want
to redouble their efforts to
have influence,” said Scott
Snyder, a Korea expert at the
Council on Foreign Relations.
Ties between Pyongyang
and Beijing have been rocky
since at least 2013, when Mr.
Kim executed his uncle and senior adviser, Jang Song Thaek,
who was viewed as one of
North Korea’s most pro-China
officials, analysts say. Still, for
Mr. Kim to meet a U.S. leader
before meeting his Chinese
The Dollar Rescued Ecuador. Can It Save Venezuela?
BY JOHN OTIS
AND KEJAL VYAS
Ecuador's inflation rate
100%
2000
Dollarization begins
80
60
MARTIN BERNETTI/AFP/GETTY IMAGES
QUITO, Ecuador—Devalued
and derided, this country’s former currency, the sucre, has
been out of circulation for so
long that when shopkeeper Raúl
Jumbo was shown an old 20-sucre coin he didn’t recognize it.
Ecuadoreans have grown accustomed to U.S. dollars, which
their government adopted in
2000 to overcome soaring inflation and the sucre’s collapse.
A similar action is now being proposed for Venezuela by
Henri Falcón, an opposition
candidate in the inflationracked
country’s
May
20 presidential election. Dollarization is the course Mr.
Falcón, in his long-shot bid to
unseat President Nicolás Maduro, says will extract Venezuela from its worst economic
crisis in modern history.
Mr. Falcón, a former state
governor who broke years ago
with the long-ruling Socialist
Party, says using the U.S. dollar would end hyperinflation
by stopping the overprinting
of bolivars, the national currency, which has lost 99.9% of
its value since Mr. Maduro
took office in 2013.
For Venezuela’s government,
which routinely attacks U.S.
Stability Tool
40
20
0
2000
’05
’10
’15
In 2000, after Ecuador adopted the U.S. dollar, a state employee
feeds 50-sucre bills into a machine that destroyed them.
Source: Central Bank of Ecuador
capitalism, abandoning a currency named after independence hero Simón Bolívar for
the U.S. dollar is too painful a
comeuppance to contemplate.
“We are not going to be a
colony of the dollar,” Mr. Maduro declared Thursday as he
unveiled plans to erase three
zeros off the bolivar, a measure economists say will have
little impact on Venezuelans’
daily struggle to pay for increasingly scarce food.
De facto dollarization is already under way in the state-
in the late 1990s with some of
the same problems now ravaging oil-rich Venezuela. Although
Ecuador’s currency transition
was traumatic, analysts say the
dollar eventually helped the nation’s economy recover.
“People here have no faith
in politicians,” Ecuadorean
Congressman Paco Moncayo
said, “but they do have faith in
the dollar.”
That faith was born from
disaster. A severe banking and
economic crisis in 1999
prompted Ecuador to go on a
dominated economy, Mr. Falcón
says. Ignoring price controls,
merchants often sell goods at
prices that reflect their freemarket value. That is often too
much for most Venezuelans,
who earn the equivalent of a
few dollars a month.
“The biggest enemy of our
people is hyperinflation,” Mr.
Falcón said in a recent interview.
Latin American nations that
use the greenback include Panama, El Salvador and Ecuador,
an OPEC member that grappled
THE WALL STREET JOURNAL.
sucre-printing spree, causing
the currency to fall from 3,000
to 25,000 to the dollar in the
four years ending at the beginning of 2000. In a bid to
save his government, thenPresident Jamil Mahuad announced on Jan. 9, 2000, that
Ecuador would adopt the U.S.
dollar. Twelve days later he
was ousted in a coup, but his
successor endorsed dollarization. The introduction of the
greenback jolted Ecuador’s
economy but prices and wages
eventually stabilized.
Detractors say dollarization
prevents governments from
devaluing or taking other measures during tough times. Rafael Correa, Ecuador’s president from 2007 to 2017, once
described it as “being in a
boxing ring wearing a straitjacket.” But he never pulled
the trigger on abandoning the
dollar, a move many believed
would have exposed his country to economic uncertainties.
Quito investment banker
Ramiro Crespo predicted a
similar success should Venezuela move to the dollar, however hurtful losing the bolivar
might seem to national pride.
“You have more sovereignty
when people are proud,
healthy and free, not when
they are starving,” he said.
counterpart might be considered an insult.
Mr. Kim’s trip to Beijing is a
reminder of the deep relationship between North Korea and
China, which backed North Korea in the Korean War. His father, Kim Jong Il, on occasion
traveled to Beijing and Russia
aboard an armored train.
Video clips circulating online showed what appeared to
be a North Korean train at a
Beijing railway station and a
large motorcade leaving the
station, amid tight security.
Witnesses saw a similar
motorcade sweeping into the
Diaoyutai State Guesthouse,
where visiting leaders often
stay. The entourage later visited a Beijing district home to
many technology companies.
Ancient
Traces Found
In Amazon
BY ROBERT LEE HOTZ
Long before the arrival of
Europeans in the Americas,
one of the world’s largest rain
forests teemed with people
who transformed the woods
around them, say archaeologists who have found new evidence of farms, settlements
and roads buried beneath the
flora of Brazil’s Amazon Basin.
The findings include 81 preColumbian clusters of earthworks in the Upper Tapajos
Basin, located along the southern rim of the Amazon in the
Brazilian state of Mato Grosso.
Dating to A.D. 1250-1500, the
sites range from small ditched
enclosures to large settlements with multiple mounds,
plazas and causeways, the archaeologists said.
Francisco Nakahara, a retired financial manager in São
Paulo who studies free online
satellite
photos
as
a
hobby, first spotted the traces
of circular earthworks, the researchers said. The archaeologists reported their findings in
Nature Communications on
Tuesday.
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | A7
WORLD WATCH
WORLD NEWS
Canada Faces a Labor Shortage
Officials Tally Deaths
From Drug Sweeps
Drug-enforcement officials
said on Tuesday that nearly
4,100 people have been killed in
shootouts with police since the
start of President Rodrigo Duterte’s bloody antinarcotics campaign, a growing number that
has attracted international condemnation.
Last week was one of the
bloodiest in the campaign, with
13 killed by police in one night
and more than 100 arrested as
officers raided homes and
staged sting operations near the
capital, Manila.
U.S. Deputy Assistant Secretary of State James A. Walsh,
who monitors the international
narcotics trade, said in January
that Washington had reduced its
support for the Philippine police
force, which once included training in areas such as counterterror operations, because of human-rights concerns.
Philippine police deny allegations that they have summarily
executed drug suspects.
—Jake Maxwell Watts
CANADA
Ottawa Acts to Stop
Diversion of Metals
The government said it would
bring in new rules to prevent diversion and transshipment of
steel and aluminum.
The development comes
days after the U.S. introduced
global tariffs on steel and aluminum imports, aimed at protecting domestic makers from
cheaper imports. Canada was
among several countries to receive temporary exemptions
from the tariffs until May 1.
The regulatory changes Canada announced Tuesday include
new measures to allow officials
to investigate companies that
may be trying to avoid duties by
slightly modifying their products
or assembling them in a third
country not subject to duties.
Canadian border agents will
also have more flexibility in the
criteria they use to determine
whether products are being imported into Canada at artificially
low prices, the government said.
—Kim Mackrael
Merit-based approach to immigration, seen as a model for U.S., yields too few blue-collar workers
BY SARA SCHAEFER MUÑOZ
Calgary-area farmer Ray
Price has seen a steady increase in demand from Asia
for his pork products in recent years but says he can’t
find enough workers to expand his business.
With an aging local workforce and Canada’s restrictions on lower-skilled immigrants, “we are chronically
short on people,” he said.
“Calgary has professionals,
engineers and people like
that, but what we need are
people who want to learn
meat processing.”
As U.S. lawmakers seeking
to revamp America’s immigration system have praised
Canada’s, Mr. Price’s experience highlights a downside.
While Canada has minimal illegal immigration, its model
for legal immigration favors
applicants with education,
work experience and language proficiency. Some employers and economists say
that system yields few workers to fill blue-collar or
lower-skilled positions.
Job openings in Canada
jumped 15% in the third quarter of 2017 from the yearearlier figure, to 468,000, according to government
figures. The rise was led by
vacancies in sectors such as
transportation, manufacturing and food service.
Proponents of Canada’s
merit-based model, which
lets in about 300,000 new
permanent residents a year,
say it encourages those who
will contribute to the economy by finding jobs or starting businesses, limiting burdens on social services. Polls
have shown that Canadians
generally feel immigration is
positive for the economy.
The U.S., by contrast, favors applicants who already
have relatives in the country
and uses a lottery for those
from underrepresented countries—a system that has
AMBER BRACKEN FOR THE WALL STREET JOURNAL
PHILIPPINES
Workers process meat at a Sunterra plant, whose owner says he can’t find enough of them to expand.
come under fire from President Donald Trump and
some lawmakers. In his State
of the Union address in January, Mr. Trump called for a
limit to immigration based
on family ties and a shift toward the merit-based systems used by Canada, Australia and others.
Meanwhile, many Canadian employers say Canada’s
system leaves them struggling to fill positions for
farmworkers, truck drivers
and food-service personnel.
In the U.S., too, companies
already fret that tighter immigration could lead to further shortages in sectors like
food and construction.
Mr. Price is the third generation to run his family’s
pig farm, Sunterra, outside
Calgary on the Alberta
plains. He employs about 135
people at the farm’s pork
processing plant on the
property, paying from 20 Canadian dollars (US$15.54) up
to C$25 an hour for skilled
cutters and processors. He
says he would like to hire at
The Face
of Change
Different Paths
Canada's legal immigration focuses on skills and education, while the
U.S. system is driven largely by family ties.
Share of each country's permanent resident admissions
by immigration category, 2016
Canada
Employment-related*
U.S.
52.6%
11.7%
Family ties
Other†
26.3%
68.0%
21.0%
20.3%
*Includes skilled workers †Includes Canada's protected persons, refugees and humanitarian,
and U.S.'s refugees, diversity lottery, asylees and others
Sources: Immigration, Refugees and Citizenship Canada; Homeland Security (U.S.)
THE WALL STREET JOURNAL.
least 25 more to meet rising
demand from Japan and
China.
“I’d like to run a double
shift, but we can’t get enough
in for the day shift, let alone
for the night,” he said.
Labor shortages are especially acute in provinces
where the local workforce is
aging, say some economists
and employers, exacerbating
a mismatch between available jobs and arriving immigrants.
“We shouldn’t bring in
economists to work in a call
center,” said David Campbell,
former chief economist for
the government of New
Brunswick, in eastern Canada,
and an economic consultant.
Andy Keith, co-owner of
Seafood Express (PEI) Ltd.,
in Charlottetown, Prince Edward Island, says he would
like to buy around 10 more
trucks to keep up with demand for the current fleet of
65 carrying food across
North America. But he says
he would be hard-pressed to
find drivers.
“It’s just a battle to hire,”
he said. “We are turning
down shipments every day.”
Ahmed Hussen, Canada’s
minister of immigration, refugees and citizenship, acknowledges labor shortages
in some areas and points to
government efforts to address
the immigration mismatch.
Many Canadian provinces,
which have more autonomy
on immigration policy than
U.S. states do, have worked
in recent years with Ottawa
to create programs that better target local labor needs.
One new initiative, the Atlantic Immigration Pilot, allows employers in Canada’s
eastern provinces to recruit
specific types of foreign
workers, such as seamstresses or drivers.
“We’ve made [the program] flexible. It addresses
the labor market shortages
and improves demographics,” Mr. Hussen said.
Mr. Price and others seeking workers have also made
use of the federal government’s Temporary Foreign
Worker Program, which allows employers to hire foreign nationals to fill shortages temporarily, bypassing
the more selective process
for permanent residents. But
many employers say the program is onerous and timeconsuming. They must first
prove they have offered the
jobs to Canadians and there
can be a considerable lag between the moment they need
workers and when they actually arrive.
Sally Love Connally
Government Strategy
Atlanta, GA
In the dynamic world of healthcare, it’s important to understand the complex and evolving
ecosystem and its impact on customers. Team members like Sally Love keep us current and
engaged in the conversation so we can play a vital role in helping the system work smarter.
It’s just one way our people are helping to accelerate the transformation to a value-based
healthcare system. Change Healthcare. Inspiring a better healthcare system.
changehealthcare.com
©2017 Change Healthcare Operations, LLC. All rights reserved.
.
A8 | Wednesday, March 28, 2018
* ***
THE WALL STREET JOURNAL.
WORLD NEWS
Anger Erupts After Russia Blaze
Familiar with disaster
and prone to rumor,
citizens scorn official
version of mall fire
BY LAURENCE NORMAN
AND JULIAN E. BARNES
VYACHESLAV PROKOFYEV/TASS/ZUMA PRESS
BY JAMES MARSON
MOSCOW—Russian officials
said a shopping-mall fire Sunday in the Siberian coal-mining city of Kemerovo killed 64
people, but the public isn’t
buying that account.
Some Russians, shocked by
video of the fire, agitated by
online reports and habitually
suspicious of official accounts,
said the tragedy was far
worse. A few thousand people
gathered on Tuesday outside
Kemerovo’s city hall for a vigil
that turned into a daylong
rally of sorts, and was broadcast live online.
The fire has presented President Vladimir Putin with the
first major bout of public discord since he secured a new
six-year term in an election
this month.
Televised reports of a Tuesday visit to Kemerovo by Mr.
Putin showed the Russian
leader as sympathetic and taking aim at the corruption he
said was to blame for the disaster.
The fire tore through the
Winter Cherry mall in Kemerovo, a city of a half-million
inhabitants some 2,000 miles
east of Moscow. Firefighters
spent hours battling the blaze
as it gutted the top floors of
the five-story building, which
housed shops, a bowling alley,
an ice rink and a movie theater.
Harrowing personal stories
from Kemerovo have shocked
a nation hardened to such disasters. Security-camera footage showed adults and chil-
People put down flowers at an event in memory of Kemerovo shopping-mall fire victims in Manege Square in Moscow on Tuesday.
dren running in all directions
as flames and smoke quickly
filled a hall. Another video
showed a boy jumping from a
fourth-story window through
billowing smoke.
Russian media have recounted how children locked
in the movie theater desperately messaged relatives to say
they couldn’t breathe. One
man described how he lost
three daughters, his wife and
his sister. Most of the victims
were children, officials said.
Public distress was further
stoked by accounts shared on
social media from people who
said they were witnesses or
relatives and said that hundreds had died.
Thousands
of
people
poured onto the streets in cit-
Moscow
RUSSIA
Kemerovo
KAZAKH.
MONG.
CHINA
THE WALL STREET JOURNAL.
ies across Russia on Tuesday
evening to remember the victims of the fire in vigils approved by the authorities, but
with an undercurrent of anger.
At the Kemerovo rally on
Tuesday, amid rumors that the
real death toll stood at around
350, a group of citizens went
to a cold-storage facility, the
city morgue and the cemetery
in search of dozens of suspected hidden bodies.
They reported back that the
official death toll held up.
“There was nothing there
apart from fish and ice cream,
just as it should be,” a bearded
man in a green coat said after
visiting the cold-storage facility.
Some in the crowd howled
derision and called for the
ouster of the governor of Kemerovo region.
On Tuesday, Mr. Putin laid
flowers at the scene, visited
survivors and held a meeting
with senior officials, where he
blamed the fire on the “criminal negligence and sloppiness”
of local bureaucrats and the
mall’s managers.
The events in Kemerovo are
unlikely to pose a serious
threat to the 18-year rule of
Mr. Putin, whose approval ratings stand around 80%. The
president on Tuesday sought
to divert the focus of anger
about the fire. “They didn’t
give a damn about people’s
safety,” he told the officials.
The country’s top criminal
investigator, Aleksander Bastrykin, told Mr. Putin that the
fire was most likely caused by
an electrical fault.
The fire-alarm system was
turned off, and the doors to
the cinema has been locked,
perhaps to prevent children
without tickets from sneaking
in, he said.
Five people, mostly top
managers of the mall, had
been detained, he said.
Critic Launches New Greek Political Party
YORGOS KARAHALIS/BLOOMBERG NEWS
BY NEKTARIA STAMOULI
AND MARCUS WALKER
ATHENS—Yanis Varoufakis
is back to rescue Greece and
rock the European establishment again. Or so he hopes.
On Monday night the flamboyant former finance minister, who enraged European authorities at the height of
Greece’s debt crisis in 2015,
launched his new Greek political party at a theater here.
That year, his country
bowed to strict austerity demands. Now his solution to
Greece’s sky-high debt is the
same as his unsuccessful push
before: to show creditors who
is boss.
If elected, he told the gathering of around 300 people,
he would run looser budgets.
Greek banks would be revived
with public money. He would
swap Greece’s bonds for new
ones whose payments depend
on economic growth. These
and other policies would be
implemented on day one, he
said.
And this time, unlike in
2015, he vowed there would
be no negotiation with Europe,
no surrender.
His party is called the European Realistic Disobedience
EU Strains
To Act on
Moscow’s
Meddling
Former Finance Minister and antiausterity voice Yanis Varoufakis at the launch of MeRA25.
Front. His refrain is that Europe’s establishment is unrealistic, not him. “When they
start sending orders, they will
receive strong disobedience,”
he said. “They will have to
bear the cost of defenestrating
us from the euro, or accept
our policies,” he said to warm
applause.
Many eurozone officials
wanted to defenestrate Mr.
Varoufakis in 2015, when he
was the media-friendly face of
Greece’s revolt under the populist left-wing Syriza party
against the austerity policies
of German-led creditors.
Mr. Varoufakis’s leather
jacket, motorcycle and combative soundbites made him a
global celebrity. Then, too, he
argued that Greece could force
Europe into concessions by
just saying no.
The problem was that Germany was willing to dump
Greece from the euro, but
most Greeks didn’t want to be
thrown out. Greek Prime Minister Alexis Tsipras belatedly
accepted that his near-bankrupt government had no alternative to European bailout
loans.
After firing Mr. Varoufakis
as finance minister, Mr. Tsipras signed up to Germany’s
tough austerity terms in July
2015. Greece is set to complete
the three-year program this
summer, ending the biggest
sovereign bailout in history.
Mr. Varoufakis views the
Syriza government’s reversal
as a great betrayal. He has
turned his version of events
into bestselling books and
popular lectures. Syriza has
accused Mr. Varoufakis of
“myth-making.”
Outside Greece, he still has
legions of fans. In Greece,
however, he struggles to command wider respect these
days. Many ordinary Greeks
view his confrontational tac-
tics as a costly failure. They
hope for a gradual return to
economic stability, not another fight with Europe.
To Mr. Varoufakis, however,
Greece is becoming a permanent “debt colony” of Europe.
On Monday he compared the
struggle to Greece’s 1820s war
of independence against the
Ottoman Empire.
Opinion polls haven’t yet
gauged whether his new party,
known by its Greek acronym
MeRA25, can make an impact.
Elections are due by fall 2019.
The party is part of Mr. Varoufakis’s Europe-wide movement
for more democracy, called
DiEM25, which has attracted
support from prominent leftwing intellectuals.
Speakers at Monday night’s
launch included American linguist and radical political
writer Noam Chomsky, appearing by video from Arizona. He
called Mr. Varoufakis’s new
party “a beacon of hope in our
troubled world.”
British musician Brian Eno
said Greeks have given the
world great ideas, “like ouzo
and democracy.” Croatian philosopher Srecko Horvat described how founding DiEM25
with Mr. Varoufakis helped
him overcome a bad breakup.
BRUSSELS—The expulsion
of 42 Russian diplomats from
18 European Union capitals this
week sent a potent signal of
Europe’s anger over the poisoning in the U.K. of a former Russian spy. But effective action to
blunt Moscow’s espionage, political interference and other
covert actions remain modest.
Since Moscow’s annexation
of Crimea in 2014, the North
Atlantic Treaty Organization
has toughened its military
readiness. But Europe’s response to nonmilitary pressure
has been weaker as governments disagree on where the
biggest threats lie and when
provocations
are
serious
enough to require a response.
At a summit last week, EU
leaders ordered officials to
find new measures by June to
strengthen the bloc’s resilience
to Russian-backed threats.
NATO said Tuesday it was
revoking accreditation of
seven diplomats and rejecting
the application of three new
ones as part of a policy that
will now restrict the Russian
mission to a maximum of 20.
NATO Secretary-General
Jens Stoltenberg framed the
expulsions as going beyond a
reaction to the poisoning, saying they were part of “a
broader response” to “reckless
behavior by Russia. Russia has
underestimated the unity of
NATO allies,” he said.
Russia-backed interventions
vary widely, European officials
say, citing cyberattacks, espionage and election meddling in
the U.S. and elsewhere. All are
designed to raise questions
about the origin or responsibility so as to minimize a
Western response, they say.
Earlier this year, suspected
Russian hackers posted a false
story about Lithuanian Defense Minister Raimundas Karoblis to a TV channel’s website, then sent messages to
officials including a link to the
fake story along with mali-
Governments disagree
on where the biggest
threats lie and when
a response is merited.
cious code designed to infiltrate government computers.
“It started as fake news, but
in fact it was a cyberattack, an
attempt to spread a virus
meant to take over key systems,” Mr. Karoblis said.
Russian officials deny meddling in other countries’ affairs.
Kadri Liik, a senior policy
fellow at the European Council
on Foreign Relations, said after
the 2016 U.S. presidential election many Europeans became
more convinced of Russian
meddling. “I think European
countries have started thinking
about it but I think the readiness is very uneven,” she said.
SING
Continued from Page One
says, “I don’t care if I can sing
well or not.”
In China, where karaoke is
embedded into business and
social life, the solo booths are
a place for people who enjoy
singing but don’t like the pressure of performing for others.
Coin-operated solo karaoke
booths first spread in Japan
and South Korea about five
years ago. The booths are now
sprouting in China’s malls, libraries and airports, more
than 30,000 of them over the
past two or three years, industry executives estimate.
“A customer can sing karaoke in the middle of a shopping trip,” says Li Songlin, an
industry analyst at Chinese research firm iiMedia. The firm
estimates China’s karaokebooth market will double to
about $1.2 billion this year.
Han Zhimin, a 25-year-old
consumer-trends researcher
for a cosmetics company in
Shanghai, dreads her office karaoke outings. Talented sing-
ers, turn into “mic hogs,” she
says, while everyone else sits
in silence—or worse.
“If you are a bad singer and
you sing,” Ms. Han says, “it’s a
disaster for everyone.”
Ms. Han says she passed by
a solo karaoke booth in Shanghai one evening and out of curiosity stepped inside. She
sang Chinese folk songs and
discovered she liked karaoke
singing, just not with people
listening.
Daisuke Inoue, 77, who invented the karaoke machine in
Japan in 1971 for restaurant
singalongs, says no one should
be ashamed of their voice.
Hearing your friends sing
badly is part of the karaoke
tradition.
“When I see tone-deaf singers enjoying themselves,” he
says, “it’s a moment when I
feel really good about having
introduced karaoke into this
world.”
Solo booths are useful for
practicing, Mr. Inoue says, but
he prefers the tried-and-true
karaoke experience—getting
drunk and singing for your
friends. His favorite is the Japanese ballad “Sake, Tears, Man
BAI KELIN/IMAGINECHINA/ASSOCIATED PRESS
FROM PAGE ONE
A singer alone with the music in a Shanghai mini karaoke booth.
and Woman.”
Mr. Inoue has advised
Thunderstone Technology Ltd.,
a Beijing-based maker of karaoke software that is trying to
capitalize on popularity of
solo booths. Customers in the
past couple of months can’t
get enough of “Guangdong
Ten-Year Love Story,” a sappy
ballad about a lovelorn migrant.
Others indulge in Western
fare, according to Thunder-
stone data. This month, for
instance, popular selections
included “Sugar,” Maroon 5;
“Rolling in the Deep,” Adele;
“Poker Face,” Lady Gaga; “Because of You,” Kelly Clarkson;
and two from Taylor Swift:
“Bad Blood” and “Love
Story.”
The booths feature autotune software, which Thunderstone Chief Executive Ma Jie
says corrects off-key voices,
within a limited range. “It
doesn’t matter if you’re a good
singer,” he says. “You’ll sound
better.”
Singers can record their
sessions to download and
share. The most popular package is 15 minutes for 20 yuan,
a little more than $3. Those
too shy to sing even in private
can read poems, such as
“Snow” by Mao Zedong.
Two people can fit snugly
in the karaoke booths, which
since July are required to have
at least one see-through wall.
The Ministry of Culture made
the requirement “to guide the
healthy development of the
mini-singing booth market.”
Duets are allowed but, apparently, no fooling around.
Two booths from China recently popped up at the
SkyView Center in the Flushing neighborhood of New York
City. Li Yipeng, the venturecapital investor who funded
the booths’ installation, saw
their popularity abroad and
decided to test the waters in
the U.S.
“Singing is universal,” he
says. The directions and lyrics,
however, are in Chinese, and,
for now, only Chinese e-pay-
ments are accepted.
At INLOVE KTV in Beijing,
manager Zhou Jian said a
booth in a mall can’t compare
with his karaoke parlor’s black
leather couches and gothic
chandeliers. “What we can offer is party time,” he says,
“which you wouldn’t get from
the booth.”
Singing alone in a glass
booth suggests the person is
friendless and single, says Cai
Xu, who works in the Beijing
tech industry. “It’s like 10
times worse than going to a
movie alone,” he says. “People
can see you.”
Just watch Huang Kaixi as
she grips the microphone,
takes a deep breath and, in a
mall karaoke booth, raps, “You
better lose yourself in the music.”
The 29-year-old bobs her
head as she performs “Lose
Yourself” by Eminem: “The
moment. You own it. You better never let it go.”
Ms. Huang then looks over
her shoulder through the
plexiglass wall to see shoppers
gawking. “This is really awkward,” she says.
—Yang Jie and Eva Dou
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | A9
Children believe in miracles. What if we all did?
Children see the true wonder of Easter. Imagine if we all saw the world like that.
The people of The United Methodist Church believe in growing the kind of deep spiritual relationships
that span a lifetime. Together, through God’s love, we can all experience the miracle and wonder of Easter.
Visit RETHINKCHURCH.org and see
what the kids have to say about miracles.
.
THE WALL STREET JOURNAL.
A10 | Wednesday, March 28, 2018
IN DEPTH
Two Allegations
And No Recourse
One employee found only
sympathy; another quit rather
than risk being ‘blackballed’
In the winter of 2010-11,
Joan Fernald worked at the
Wynn Las Vegas spa when she
was assigned to give Steve
Wynn a massage. Once on the
massage table, Ms. Fernald
said, Mr. Wynn repeatedly indicated she should massage his
genitals.
She refused. “I was offended that he was insulting
me and my profession—that he
thought I was somebody who
would do that,” she said. A
similar scene unfolded during
several subsequent sessions,
she said.
After each event, she said,
her two managers at the spa
inquired how things had gone,
casually asking questions such
as “Did it happen again?”
Eventually, Ms. Fernald said,
she described the incidents to
the executive director of spas
at the company’s Las Vegas
casinos and asked what to do.
The director, Ella Kent, was
sympathetic but gave no advice, Ms. Fernald said.
“Her response was one of
skirting around the issue,” the
former massage therapist said.
“The attitude was: ‘He is Mr.
Wynn. How do you say no to
BRIDGET BENNETT FOR THE WALL STREET JOURNAL (2)
“I remember feeling zero support.”
Rules for Wynn
Mr. Nielsen said he sometimes brought complaints about
Mr. Wynn’s behavior with
women to Maurice Wooden,
then COO of the Las Vegas operation, and now president of
Wynn Resorts’ two Las Vegas
casinos. One time, according to
Mr. Nielsen, Mr. Wooden responded by saying managers
needed to better control the female employees who were complaining.
A company spokesman said
it would be inappropriate for
Mr. Wooden to comment until
the investigation is complete.
When complaints were reported to Mr. Schorr, Mr. Nielsen recalled, Mr. Schorr said he
would speak to the boss.
Mr. Nielsen said that in follow-up conversations with Mr.
Schorr—after nothing had
changed—“we would say, ‘Have
you called him?’ He would say,
‘I’m working on it. I’m working
on it.’ I don’t know if he ever
had the conversations” with Mr.
Wynn.
Some former employees said
Mr. Schorr wasn’t the ideal person to judge workplace behavior. He sometimes made comments about women’s breasts
and, for years in the 1980s, he
gave female assistants lingerie
as presents, according to these
people. Mr. Schorr didn’t respond to requests for comment.
Former salon manager Ms.
Kambouris said she told Mr.
Schorr that Mr. Wynn’s behavior was “out of control.” She,
too, experienced it, she said:
When she gave Mr. Wynn a
manicure, he would sometimes
rub his leg against hers and
“say, ‘How does that feel?’ ” She
said she brushed him off as best
she could.
Ms. Kambouris said she was
dismissed in 2013 after a salon
management change, in what
human resources told her was
Mr. Wynn’s decision. Wynn ReMr. Wynn?’ I think she did not
want to be the one to anger
him.”
Ms. Kent didn’t respond to
requests for comment about
Ms. Fernald.
Karen Parente, who was
hired to work as an art-gallery
manager at the Wynn Las Vegas in 2005, said she noticed
the deference with which others, including managers,
treated Mr. Wynn.
“People were scared of the
guy. I could see that in their
mannerisms. If he even walked
past you on the retail floor, I
could see the bodies tightening
up,” she said.
Ms. Parente traveled with
Mr. Wynn to pick up a painting
at the Getty Center in Los Angeles. On the plane, she said,
he guided her into the bathroom and then pressed his
body against hers. She said
she eased her way out of the
bathroom.
Another time, she said, he
found her in a lounge one
night and indicated they should
go to a hotel room together,
which she declined.
Believing no manager
would help her if she complained about Mr. Wynn’s actions, Ms. Parente said, she resigned, left Nevada and moved
into a different line of work.
“I knew if I raised a stink
that I would be blackballed,”
she said.
—Alexandra Berzon and
Elizabeth Bernstein
Angela Saxton
CALVIN SIT/BLOOMBERG NEWS
Continued from Page One
at Mr. Wynn’s properties, declined to comment.
The employees, many of
whom are describing their experiences on the record for the
first time, outline a wide-ranging corporate failure, from senior management to lower-level
employees, who through their
action or inaction enabled the
boss’s behavior.
At times, former employees
said, low-level supervisors were
sympathetic but felt themselves
powerless. Tiffany Kambouris,
who was a salon manager at
Wynn Resorts, said she brought
complaints about Mr. Wynn’s
behavior toward women to upper management without effect.
“These people are supposed
to be handling problems and
taking care of it, and they
don’t,” she said. “It’s shameful.”
The employees’ accounts,
spanning decades, jobs and different properties in Mr. Wynn’s
empire, help explain why the casino magnate’s alleged behavior
might have gone on for so long,
with complaints extending back
to the early years of a career
that made him one of the industry’s most powerful men.
Mr. Wynn, when he resigned,
said he couldn’t be effective in
an environment in which “a
rush to judgment takes precedence over everything else, including the facts.” In a statement for the Journal’s January
article, which reported Mr.
Wynn had paid $7.5 million in
2005 to a manicurist who told
others he forced her to have
sex, Mr. Wynn said the idea that
he ever assaulted a woman was
“preposterous.” He didn’t address other allegations in the
article.
Responding on March 15 to
questions for this article about
misconduct allegations beyond
those detailed in January, an attorney for Mr. Wynn sent a
statement on his behalf saying
he “declined to participate in
The Wall Street Journal’s reporting because it is clear that
the Journal has no intention of
treating him fairly.” The statement called the allegations “salacious” and didn’t address their
specifics.
Wynn Resorts referred
questions about the allegations
to a special committee of its
board investigating Mr. Wynn’s
behavior. That committee said
the board “cares deeply about
the safety and well-being” of
employees, but that it isn’t appropriate to comment until the
investigation, aided by outside
counsel, is complete. New CEO
Matt Maddox said in a written
statement he and the board
will act quickly on any recommendations from the investigation, adding the company
has “zero tolerance” of sexual
harassment.
Officials in Massachusetts,
where Wynn Resorts is building
a casino-hotel, have said they
are looking into who was told of
Mr. Wynn’s alleged behavior and
what, if anything, they did in response. Mr. Maddox recently indicated on CNBC he has known
about the manicurist’s 2005 allegations since 2016. Court fil-
Top: Angela Saxton, a former spa attendant at The Mirage in Las Vegas, who said she was warned against complaining. Bottom left:
Dora Barnum, pictured in the 1980s, who said she left her job because of Steve Wynn’s advances. Bottom right: Steve Wynn in 2016.
sorts said it doesn’t comment
on employment matters.
Wynn Resorts’ policy is that
all employees receive regular
training to prevent sexual harassment. Mr. Wynn said in a
deposition he didn’t participate
because he didn’t need it, according to comments made in
court by a lawyer for a party involved in a dispute between Mr.
Wynn and his ex-wife.
Wynn Resorts told the Journal in January it had a hotline
that hadn’t recorded a single
complaint about Mr. Wynn, a
statement CEO Mr. Maddox repeated to CNBC. Instructions
posted on an employee intranet
portal say the company’s confidential hotline is for accounting
or securities issues, not for harassment complaints. For those,
employees are told to go their
supervisors or the human-resources or legal departments.
Asked about that, Wynn Resorts said the line was set up in
response to a 2002 federal securities law but has mostly been
used for human-resources mat-
ters, despite the written instructions saying otherwise. A
spokesman said the company
would change the language on
the site.
Before Mr. Wynn opened the
Wynn Las Vegas, he built and
ran the Mirage casino, where
Ms. Saxton, the spa attendant,
‘The attitude was:
‘He is Mr. Wynn.
How do you say no to
Mr. Wynn?’ ’
started working in 1993. She
was exercising in the gym one
evening the next year when she
said Mr. Wynn came and asked
for help working out, which he
sometimes needed because of
failing eyesight.
He asked her to help him into
the hot tub in the men’s locker
room, according to Ms. Saxton.
He took off his clothes and told
DAVID BECKER/ZUMA PRESS
WYNN
ings indicate general counsel
Kim Sinatra has known since at
least 2009. Wynn Resorts
wouldn’t comment because the
board probe is continuing.
A written anti-sexual-harassment policy given to Wynn Resorts employees states in part:
“The first and most important
thing an employee must do is
speak up.”
The rules were different
when it came to Mr. Wynn, said
Jorgen Nielsen, who was artistic
director of the Wynn Las Vegas
salon when it opened in the
mid-2000s.
He said Doreen Whennen,
then vice president of hotel operations, made clear any complaint involving Mr. Wynn
should be taken not to human
resources but to her or to Marc
Schorr, then the company’s
chief operating officer.
Mr. Nielsen said he brought
women’s complaints to Ms.
Whennen on several occasions
and she sometimes told him to
look in the employees’ files to
see if there were any past problems that could be a pretext to
get rid of them.
“It was always the person’s
fault,” he said. “Nobody really
looked into it.”
An attorney for Ms. Whennen said she had no comment.
her to remove hers, she said.
She said she didn’t want to, but
relented when he told her “it
will be fine. You can help me.”
The spa attendant, 23 at the
time, said Mr. Wynn initiated a
sex act on her. She said she
grabbed her clothes and ran
out, shaken.
Later that evening, she said,
Mr. Wynn called her at her
mother’s house, where she
lived—she assumes he got the
number from employment files
or an HR employee—and said
the incident had been a “misunderstanding.” Her mother, Pamela Abramowitz, said she got
on the line and asked Mr. Wynn
not to call her daughter again.
The next day at the spa, Ms.
Saxton said, her boss, Nina
McLaughlin, pulled her aside
and asked her about the incident, making her feel chastised.
She said Ms. McLaughlin
didn’t advise her to report the
incident. “I remember feeling
zero support,” Ms. Saxton said.
“You don’t know what you are
going to do” in a situation like
that. “You are trained that you
help him no matter what happens. You drop what you are doing any time and you help him.”
Ms. McLaughlin said in an interview she didn’t intend to
make Ms. Saxton feel as if it
was her fault. Ms. McLaughlin,
who said she didn’t have all the
details of what allegedly happened in the spa, said she believes she asked Ms. Saxton
whether she wanted to report
the matter, but left it up to her.
‘Don’t try’
Sold Off
Wynn Resorts share price
1
$200
2
3
4
180
160
J
F
M
1 Jan. 26
The Wall Street Journal publishes investigation detailing allegations
of sexual misconduct by Steve Wynn toward employees.
2 Feb. 6
Steve Wynn resigns as chairman and chief executive of Wynn Resorts Ltd.
3 Feb. 16
Steve Wynn loses potentially hundreds of millions of dollars in severance
under separation agreement with Wynn Resorts.
4 March 21 - 22
Steve Wynn sells his 12% stake in Wynn Resorts for $2.1 billion.
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
“It was a frustrating situation,” Ms. McLaughlin said. “It
did make me sick inside. Here’s
this young, vulnerable girl… Instantly you would be gone if you
do anything or say anything.”
Ms. Saxton said Mr. Nathan,
then the head of human resources, approached her at
work and told her the incident
was her fault.
“Don’t try to make this into
anything,” she said he warned
her.
The executive also approached Ms. Saxton’s sister,
who worked for him in human
resources, and her mother, an
employee in convention sales,
blaming Ms. Saxton for the incident, her mother and the sister
said.
All three women stayed on
but said they felt their jobs
would be in danger if they
pushed the matter.
Reached by phone, Mr. Nathan said he didn’t want to talk.
He didn’t respond to detailed
questions sent by email.
Mr. Wynn’s Mirage Resorts
Inc., which owned the Mirage,
was sold in 2000.
Through the years, some
Wynn executives, especially in
human resources, have had an
almost filial relationship with
the boss. Mr. Nathan, who
headed human resources at
Wynn-managed properties from
1983 to 2006, grew up knowing
Mr. Wynn in upstate New York.
In the 1980s, before Mr.
Wynn built the Mirage, he renovated and ran the Golden Nugget in downtown Las Vegas. It
eventually became part of the
Mirage Resorts company Mr.
Wynn sold in 2000.
‘Say something
Dora Barnum, who was a
young Keno runner at the
Golden Nugget in the mid-1980s,
recalled Mr. Wynn asking to
speak with her about different
departments she could work in
temporarily while renovations
were under way.
He took her to a dark, empty
lounge, with his security detail
waiting outside, placed her
hand on his genitals and pushed
her head down, indicating she
should perform oral sex, she
said.
“I said, ‘I’m married. I can’t
do that!’ ” Ms. Barnum said.
“He said: ‘If you don’t want a
job, you can leave now,’ ” she
recalled.
She felt threatened, she said.
“So I did it. I felt disgusted with
him, with myself.”
Not long after, Ms. Barnum
said, her supervisor told her Mr.
Wynn had found her a job in the
main cage where gamblers go to
cash chips.
She said she told the supervisor, Dick LeVasseur, what Mr.
Wynn had done. “He didn’t believe me,” she said. Mr. LeVasseur said he didn’t remember
Ms. Barnum but he recalled the
Keno area was remodeled.
Ms. Barnum said Mr. Wynn
continued to make unwanted
advances, including calling her
home late at night, and she ultimately left her job because of it.
About four years ago, she
told her grown daughters Mr.
Wynn’s repeated nighttime calls
had caused arguments with her
husband, who is now deceased,
according to one daughter, Denisha Barnum.
Ms. Barnum told her daughters if anything similar happened to them at work, they
shouldn’t hold it in. “Make sure
you say something,” she said
she told them.
—Jim Oberman
and Lisa Schwartz
contributed to this article.
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | A10A
NY
* * * *
GREATER NEW YORK
Report Criticizes NYPD on Rapes
Investigators say
Complex Cases
special victims unit
Crimes reported in New York
is understaffed;
City, through March 18 of
police contest findings each year
BY ZOLAN KANNO-YOUNGS
The New York Police Department doesn’t properly investigate cases of rape in which the
victim is acquainted with the
attacker, according to a report
released Tuesday by the city’s
Department of Investigation,
which found the Special Victims
Division is “severely understaffed.”
Despite dozens of requests
from the SVD and recommendations from a working group
formed in 2010 to add more investigators to the unit investigating adult sex crimes, the
NYPD didn’t add enough investigators to handle their caseloads, according to the yearlong
probe. The Special Victims Division’s adult sex crime units
throughout the city’s boroughs
had 74 detectives at the end of
2017, two more than in 2009,
despite a 65% increase in case-
Misdemeanor sex crimes
80
Rape
60
40
20
0
2010
’12
’14
’16
’18
Source: New York Police Department
THE WALL STREET JOURNAL.
loads, according to the report.
The DOI, a nonpartisan city
oversight agency, recommended
increasing the number of detectives in the units by 73.
Detectives from the division,
who are trained to investigate
sex crimes and interview victims, don’t routinely pursue
“acquaintance” or “domestic”
rape cases after someone has
been arrested, according to the
report, which cited NYPD internal documents. The post-arrest
investigations, crucial for gathering adequate evidence for
prosecutors, are instead conducted by local precinct detectives, according to the report.
When the division raised
concerns about their caseloads
in 2011, the NYPD replied “that
SVD should simply not investigate every misdemeanor sex
crime,” the report said.
NYPD officials challenged the
findings and will soon publish a
response. High ranking chiefs
with knowledge of the division,
including Chief of Detectives
Robert Boyce, weren’t questioned for the report, officials
said. “This document is an investigation in name only; it is
inaccurate, misleading and does
material damage to the relationships of trust the NYPD
[SVD] has worked hard to develop with survivors of sex
crimes,” NYPD spokesman J. Peter Donald said in a statement.
A DOI spokeswoman said investigators interviewed Chief
Michael Osgood, who runs the
Special Victims Division, for the
report. The findings were based
on interviews with former detectives in the unit and internal
NYPD documents, the report
said. “SVD retirees confirmed
to DOI that NYPD leadership
pressures SVD to make all resources available for stranger
rapes and cases with high media profiles,” the report stated.
“The conclusion from this investigation and the documents
we found are that the NYPD
does not prioritize sexual assault and in particular instances, does not prioritize acquaintance
rape,”
said
Department of Investigations
commissioner Mark Peters.
“That is unacceptable in modern law enforcement.”
After police make an arrest,
investigating a rape committed
by a stranger requires a different approach than investigating
a rape by an acquaintance, an
official in the detective bureau
said. “In a stranger case, we
need to establish this is the person who actually did it,” the official said. “In acquaintance
cases, we know the victim is
known to the perpetrator.”
The report comes as the
handling of sexual assault cases
throughout the country has
been pushed into the spotlight,
prompted by the scandals involving celebrities and politicians. New York City has recorded a 9.6% increase in
misdemeanor sex crimes and a
32.4% increase in rapes in 2018
compared with the same period
last year. NYPD officials earlier
this month said the increase in
reporting is partially due to the
#MeToo movement.
Councilman Donovan Richards, chair of the public safety
committee, called the DOI report “troubling.”
“They should not downplay
or underplay this issue,” he said
of the NYPD. Mr. Richards said
the public safety committee
plans to hold a hearing April 9
regarding the city’s increase in
sex crimes.
Advocates who work with
sexual assault victims said the
lack of resources in the division
has a direct impact on victims
who come forward to report the
crimes.
—Mara Gay
contributed to this article.
MIKE SEGAR/REUTERS
Funeral Held for Firefighter Killed in Blaze Where Movie Was Being Filmed
SOLEMN TRIBUTE: Firefighters carried a casket with the body of New York City firefighter Michael R. Davidson out of St. Patrick’s Cathedral in Manhattan on Tuesday.
Queens, died from smoke inhalation after he became separated
from fellow firefighters while
battling the blaze last Thursday.
Fifth Avenue was closed to
traffic Tuesday morning as a sea
of uniformed firefighters and police officers lined the Manhattan
thoroughfare in solemn tribute.
Cardinal Timothy Dolan, the
archbishop of New York, who
presided over the funeral at St.
Patrick’s Cathedral, said Mr. Davidson’s “blood contained the
D.N.A.” of the fire department.
Mr. Davidson’s brother, Eric,
also a firefighter, said his older
brother called or texted almost
daily to talk about a new stock,
an investment in a bar or his
Supreme Court Nominee Is
Blocked by Connecticut GOP
BY JOSEPH DE AVILA
Republicans in the Connecticut Senate on Tuesday blocked
the confirmation of Gov. Dannel
Malloy’s choice for chief justice
of the state Supreme Court in a
highly unusual partisan dispute
over a judicial nomination.
The state Senate voted
against elevating Associate
Justice Andrew McDonald,
who has served on the Supreme Court since 2013, to the
top spot on the court by a vote
of 19 to 16. The state Senate is
equally divided between Republicans and Democrats, but
one Democratic senator recused herself due to a conflict.
Mr. Malloy, a Democrat, will
be able to nominate another
chief justice.
“Our two-party system here
in Connecticut, like we see in
Congress, is becoming increasingly polarized,” said Gary
Rose, chairman of the department of government, politics
and global studies at Sacred
Heart University. “The Republicans have become a more
conservative party over time,
and the Democratic Party has
pulled more to the left.”
“I don’t know what the future holds for me,” Justice
McDonald, 51 years old, said in
a written statement. “I do know,
however, that I will face it secure in the love and affection of
my husband, Charles, and an
Justice Andrew
McDonald was
Gov. Malloy’s
choice for chief
justice of the
state Supreme
Court.
amazing group of friends and
family that I cherish.”
Republican opposition to
Justice McDonald was driven by
personal animus against the
governor, Mr. Malloy said. The
governor also said some GOP
members refused to elevate Justice McDonald, former general
counsel for the governor, to the
top position on the Supreme
Court because he is gay, which
Republicans deny. “It is now an
undeniable fact that Andrew
McDonald has been treated differently than others who came
before him. It begs the question,
what is different about Justice
McDonald that so concerns Connecticut Republicans?” Mr. Malloy asked at a news conference.
GOP leaders have called Justice McDonald a judicial activist and object to his nomination
because they say his personal
views influence his court opinions. State Sen. John Kissel, the
Republican chairman of the judiciary committee, said Justice
McDonald’s sexuality didn’t
factor into his caucus’s vote.
“The story is about a handful of judicial decisions and
whether the majority of folks
feel that Justice McDonald is
appropriate at this time in his
judicial career,” Mr. Kissel said.
State Sen. Martin Looney,
the top-ranking Democrat in the
chamber, said Justice McDonald
meets the standards, noting
that he also served for eight
years in the state Legislature.
“newest craze, cryptocurrency.”
“He was looking to make a
better life for his family,” he said
during the funeral Mass.
Mr. Davidson, who was posthumously promoted to lieutenant, is survived by his parents,
his wife, Eileen, and their four
young children, Brooke, Joseph,
Emily and Amy.
Speaking to Mr. Davidson’s
children, Mayor Bill de Blasio
said their father would be remembered as a hero, and for his
goodness. “In your moments of
doubt, your father will be there
with you,” Mr. de Blasio said.
“You will know who he was…he
will never leave you.”
—Melanie Grayce West
BY CORINNE RAMEY
New York City’s Conflicts of
Interest Board said Tuesday it
had fined former longtime
Brooklyn District Attorney
Charles Hynes $40,000 for using city resources for his
failed 2013 re-election bid.
The board said the fine was
the largest related to campaign activities in its 28-year
history. Mr. Hynes, a Democrat
who served as district attorney from 1990 through 2013,
admitted to using his work
computer and email address
for campaign-related business.
As part of his settlement
with the board, he also admitted asking his employees to do
campaign work for him on city
time. Mr. Hynes, who is now 82
years old, lost the race to Ken
Thompson, also a Democrat,
who died of cancer in 2016.
Using city time, personnel
or resources for campaign
matters is a violation of New
York City law.
“In the midst of a feverishly
contested primary race, I made
the mistake of using my city
email for campaign-related matters,” Mr. Hynes said in a statement. His lawyer, Jim Walden,
said the settlement “is hardly a
foot fault in the epic match he
played over 40 years of distinguished service to the public.”
Mr. Hynes has long been
dogged by accusations of misconduct. In 2014, a city watchdog agency found Mr. Hynes
may have engaged in “possible
criminal conduct” for paying a
political consultant with what
appeared to be assets seized
during criminal investigations.
Mr. Walden said federal
prosecutors had investigated
Mr. Hynes and closed the case
without bringing charges.
A Brooklyn native, Mr. Hynes
was long considered a power
broker in the borough. After he
was criticized for his handling of
sex crimes in the Orthodox Jewish communities, he created a
program designed to encourage
victims to report sexual abuse.
Since Mr. Hynes left office,
about a dozen people who
were convicted during his tenure have since been exonerated as part of an effort by the
Brooklyn District Attorney’s
Office to review old cases.
Mr. Walden called the problem of wrongful convictions a
serious issue for every district
attorney. “Hynes started the
review of suspect cases in
mid-2013, and I do not think
he gets enough credit for laying that groundwork,” he said.
In the board settlement, Mr.
Hynes admitted to using his
work computer and email account to exchange more than
5,000 campaign-related emails
from May 2012 through Nov. 5,
2013. This included emails
with political consultants, donors and campaign managers.
GREATER NEW YORK WATCH
NEW YORK
MTA Worker Killed
By Bus at Depot
A Metropolitan Transportation Authority worker was
struck by a bus and died Tuesday at a depot in New York City.
It was the second transit employee death this month.
Stephen Livecchi, 59-yearsold, was pronounced dead after
being hit at the depot, in College
Point, Queens, shortly after 10
a.m. according to the New York
Police Department.
Darryl Irick, president of MTA
Bus Company, said Mr. Livecchi’s
responsibilities included directing
bus movements. Mr. Livecchi, of
Middle Village in Queens, was
hit by a bus as it was backing
up during a busy period, Mr. Irick
said. A 56-year-old woman bus
driver was behind the wheel, the
NYPD said.
The death is the second fatal
incident involving an MTA
worker this month. St. Clair
Ziare Richards Stephens, a 23year-old track worker, fell 20
feet to his death while working
on a subway tunnel in Harlem
on March 20.
—Paul Berger
THEODORE PARISIENNE
A New York City firefighter
who died last week battling a
fire on a movie set in Harlem
was remembered Tuesday as a
devoted father, the cornerstone
of his community and as a “firefighter’s firefighter.”
Michael R. Davidson, 37 years
old, a 15-year veteran of the fire
department and a native of
Ex-D.A.
Fined For
Campaign
Missteps
Police investigated the accident that killed an MTA worker Tuesday.
NEW JERSEY
Medical Marijuana
Program Widened
Gov. Phil Murphy on Tuesday
announced an expansion of New
Jersey’s medical-marijuana program, saying residents no longer
have to “jump through hoops” to
get access to the drug.
Mr. Murphy unveiled the recommendations of a panel commissioned earlier this year at a
news conference in Trenton.
Among the immediate changes
are the addition of five conditions to be eligible for medical
marijuana. Those include: anxiety, migraines, Tourette’s syndrome, chronic pain related to
musculoskeletal disorders and
chronic visceral pain.
Mr. Murphy’s decision comes
about a decade after the state
implemented its medical-marijuana program, enacted under
Democratic Gov. Jon Corzine, but
slowly implemented under Republican Gov. Chris Christie, who
had a skeptical view of marijuana.
—Associated Press
.
A10B | Wednesday, March 28, 2018
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
METRO MONEY | Anne Kadet
YANKEES
PREMIUM
UNRIVALED ACCESS,
UNPARALLELED SERVICE
LEGENDS SUITE • LEGENDS PREMIER
CHAMPIONS SUITE • DELTA SKY360˚ SUITE
FORD FIELD MVP CLUB SEATS • JIM BEAM SUITE
FOR MORE INFORMATION ON
PREMIUM SEASON TICKETS
(718) 508-3955
PREMIUM@YANKEES.COM
WWW.YANKEES.COM/PREMIUM
RIDERSMASTERSCUP
Most of us
think of ridesharing services Uber and
Lyft as virtual
outfits—a vast,
digital web of drivers connecting with passengers via app.
But if you were a driver, you’d
have a different perspective:
Uber is a place. And so is Lyft.
Both companies operate
hubs which their drivers, who
are contract workers, can
visit to sign up, resolve problems or just get a free coffee
and use the bathroom. And in
New York City, strangely
enough, the rivals maintain
hubs in the same building.
Actually, it isn’t so strange
at all. The mammoth Falchi
Building, a former warehouse
in the Long Island City section
of Queens also is home to the
New York City Taxi & Limousine Commission (TLC), which
licenses the city’s 178,000 forhire drivers. It’s driver central. Its wide main corridor is
packed with food stands
hawking dishes favored by
drivers including curry,
doughnuts and pork tacos.
Lyft recently reopened an
expanded, 12,000-square-foot
hub on the building’s fourth
floor. The space looks like a
cross between an Apple
Store and a third-grade
classroom. The décor features the brand’s hot pink,
white and lavender hues.
Drivers help themselves to
bubble gum and chocolate
kisses wrapped in purple
foil. The walls are plastered
with posters displaying
cheerful slogans such as:
“The Road is Your Oyster.”
The sound system plays upbeat pop and rock.
“We get people dancing
sometimes,” in-house DJ Jillian Appelbaum says of the
drivers. “Michael Jackson is
SARAH BLESENER FOR THE WALL STREET JOURNAL
Behind-the-Scenes
Vibe at Uber and Lyft
Lyft workers at the company’s hub in a former Queens warehouse.
always a big hit, a lot of Kool
& the Gang. Anything 70s
funk, they really like.”
Lyft General Manager for
New York City Vipul Patel
says the company hopes its
effort to create a welcoming
environment will encourage
drivers to extend such hospitality to passengers.
The hub also aims to attract and retain recruits. Demand for ride hailing services grew 65% last year in
New York City; Lyft and Uber
are signing on hundreds of
new drivers every week.
I was surprised how easy
it is to sign on as a Lyft
driver, but it makes sense.
Most arrivals already have
their required TLC license, a
lengthy process that involves
24 hours of classroom instruction, an exam on driving laws and city geography,
a drug test, a physical and a
background investigation.
After checking in with the
Lyft concierge, prospective
drivers meet at a standing
desk with a “community associate” who reviews their documents and walks them
through the driver app. It
takes about 15 minutes. Drivers leave with an information
packet and a laundry-scented
Lyft logo air freshener to
hang on their rearview mirror.
“This was fast, and they gave
me free stuff!” said Adel Mazouni, a finance student who
decided to give Lyft a try after driving for Uber.
Downstairs on the first
floor, the Uber Green Light
Hub is about three times the
size of the Lyft Hub, and the
look is more tech startup than
kindergarten. The two-story
loft is stark black and white;
the music playing one recent
morning favored thumping
dance beats. No candy here!
The services for workers,
meanwhile, are more robust.
While its onboarding process
is similar to Lyft’s, Uber also
offers two of the TLC’s required classes for free, and
the third at a discount.
William Fung, a prospective driver, said he appreciated Uber’s free classes. Still,
he was planning to sign on
with Lyft too. “It’s good to
have comparisons,” he added.
anne.kadet@wsj.com
.
LIFE&ARTS
Wednesday, March 28, 2018 | A11
Astrophysicist Neil deGrasse Tyson, actress Charlize Theron, football player Rob Gronkowski and TV personality Padma Lakshmi, clockwise from top left, have tested themselves on ‘Hot Ones.’
BY DON STEINBERG
CHARLIZE THERON’S March 8
appearance on “Hot Ones” wasn’t
her typical talk-show guest spot. “I
hate my tongue right now. If I
could pull it out, I would,” the Oscar-winning actress said near the
end, her eyes watering after she
yelled obscenities at a bottle of
hot sauce.
Guests on “Hot Ones” regularly
freak out—and give candid interviews to audiences in the millions.
On the program, which posts a new
episode online every Thursday
morning, host Sean Evans
asks celebrities about their
careers while together they
eat 10 progressively spicier
chicken wings. Episodes run
around 22 minutes. The set is
spartan: two chairs and a
small, black table that can
travel to wherever the celebrity is.
“Hot Ones” is part of the
rise of the situation talk
show. This self-aware programming geared at young
adult viewers explodes the
old panel-and-desk format,
revealing guests in unconventional ways.
Zach Galifianakis did intentionally awkward interviews on “Between Two
Ferns,” a granddaddy of the
genre. “The Chris Gethard
Show” airs live on TruTV
and encourages audience interaction with guests.
“Sneaker Shopping” takes
hip celebrities out to buy expensive footwear. Like “Hot
Ones,” it is produced by
Complex Networks, an online
media company.
Sauces like Da Bomb Beyond Insanity and Blair’s Mega
Death appear to have a physiological impact on guests. Sniffles and
tears burst loose. They try to
douse the fire with milk, yogurt or
rice. Their answers get more raw
as the Scoville rating—a measure
of hot-pepper hotness—rises to
face-melting levels. Music builds
the drama like a Hans Zimmer action-movie score. It’s a talk show
with its own story arc.
“Right now I’m ready to confess
to shit I haven’t even done,” comedian Wanda Sykes said after eating
Wing No. 8. After No. 9: “Can I call
my mother?”
Hot peppers can cause the brain
to release endorphins and dopamine, adding mild euphoria to the
emotional distortion.
“This is a spiritual experience…I
feel like Steve Jobs in the ’70s,”
actor Terry Crews cried as he
neared the finish line. He
screamed at the top of his lungs
and said “goodbye” before biting
into Wing No. 10. During the inter-
TELEVISION
Hot Sauce Becomes
Talk-Show Truth Serum
‘Hot Ones’ shows how an online series with a format breaking from
traditional TV can succeed: by inducing celebs to eat spicy wings
Host Sean Evans, left, and
YouTube personality
Philip DeFranco, right, react to
bites of hot wings.
Actor/comedian Kevin Hart,
below, cried during his
appearance.
view he also confessed
that his father’s physical abuse of his mother
prompted him to become a bodybuilder
“totally obsessed with
being strong.”
“The hot sauce is
the disruptive element.
It’s designed to knock
our celebrity guests off
their PR-driven flight
pattern,” says Mr. Evans, 31, who considers
himself a guide leading
guests on a voyage of
discovery. “I’m going
up the mountain with
you, so it’s a bonding experience.
By Wing Six, we’re best friends.”
Even with 2.9 million YouTube
views, the Charlize Theron episode isn’t among the show’s most
widely seen. It lags behind installments featuring astrophysicist
Neil deGrasse Tyson (7 million),
rapper Post Malone (11 million),
actors James Franco and Bryan
Cranston (almost 6 million) and
all-time leader Kevin Hart (13 million), in which the comedian
weeps deliriously.
The “Hot Ones” guest list—
there have been just over 100—includes athletes Rob Gronkowski
and Kevin Durant and foodie personalities Padma Lakshmi and Eddie Huang.
Upcoming guests include musician Shawn
Mendes and YouTube
personality Philip DeFranco.
Plenty of YouTube
sensations have
amassed surprising
numbers and passionate fans. Fewer have
been able to cross over
to attract mainstream
guests and audiences.
“We try to keep one
foot in the professional
bucket and one foot in
the amateur bucket,”
Mr. Evans says.
He’s a former freelance writer
who in 2015 did so well interviewing athletes and rappers on video
for the magazine Complex that
they created “Hot Ones” around
him under Complex’s “First We
Feast” umbrella of food-related
streaming shows.
Complex Networks, as it’s
known today, is its own story: a
former print-media brand
that has thrived by going
completely digital. Fashion
designer Marc Ecko and media executive Rich Antoniello
launched Complex in 2002 as
a young men’s lifestyle magazine, focusing on hip-hop culture, street fashion and
graphic art. By 2006 the company was moving “hard into
digital,” Mr. Antoniello says,
and by 2009 into video.
A joint venture of Verizon
and Hearst bought Complex
in 2016. Management folded
the print magazine after the
December 2016/January 2017
issue. Now, sharing space in
the former New York Times
building with Verizon acquisition Yahoo, Complex creates
33 weekly and daily video
shows across multiple platforms, on topics from urban
sneaker shopping to aspiring
rodeo riders.
Complex won’t say if “Hot
Ones” is profitable, but its
production budget is low, its
marketing is done via social
media, and the company
counts on a mix of revenue streams.
Recent sponsors have included
Banana Republic, Pabst Blue Ribbon, Mountain Dew and Activision.
An on-screen graphic might highlight a queasy guest’s decision to
advance to the 10th wing as an Old
Spice Steel Courage Moment.
YouTube shares some advertising revenue. Two of the 10 in the
show’s current sauce lineup are
house brands, which viewers can
buy. (Sauce makers don’t pay for
placement in the show.)
Not every guest eats all 10
wings. Comedian Jim Gaffigan, famous for loving junk food, surprised viewers by “tapping out”
early. Actress Taraji P. Henson had
her security guard finish for her.
“We’ve had people who, after
the first one, said, ‘That’s kind of
hot,’ and you can’t picture them
finishing,” Mr. Evans says. “But
then they’ll just suck it up and
power through. I think it says
something about the human
spirit.”
FROM LEFT: ADRIAN PIPER RESEARCH ARCHIVE FOUNDATION BERLIN; LUIGI COSTANTINI/ASSOCIATED PRESS
ART
AN ART-WORLD INFLUENCER GETS
A RETROSPECTIVE IN NEW YORK
Adrian Piper, inset, has an exhibit at MoMA that includes the 1992 work above, ‘Decide Who You Are #1: Skinned Alive.’
BY ANDREW LAVALLEE
WHEN the Museum of Modern Art
opens its Adrian Piper retrospective
this week, visitors walking through
a passageway in the exhibition will
be required to hum in the presence
of a museum guard.
“The Humming
Room” evokes the
idea of “silly authority,” as Ms. Piper
has put it. That
work and her
prize-winning installation “The
Probable Trust
Registry,” which
prompts viewers to
sign declarations like
“I will always mean
what I say” on bureaucratic-looking paperwork, “probably arise from my jaded attitude
toward institutional authority,”
the 69-year-old artist says in an
essay accompanying the retrospective. (Through a MoMA spokeswoman, Ms. Piper declined an interview request.)
Those “participatory” works are
part of MoMA’s exhibition of
nearly 300 of her drawings, photographs, sculpture, multimedia and
other creations. In New York, it
takes up all of MoMA’s top floor,
the first time the New York museum has devoted that entire level
to a living artist.
“We wanted to give it that scale
because we felt that not
only Adrian’s work
spans more than 50
years, but her works
keep changing,”
said Christophe
Cherix, MoMA’s
chief curator of
drawings and
prints, who organized the show
with Connie Butler,
chief curator at the
Hammer Museum in
Los Angeles and David
Platzker, a former MoMA curator.
The show, which will move to the
Hammer Museum later this year
and the Haus der Kunst in Munich
in 2019, has been in development
for four years.
“The idea of art having a social
goal, art being part of life, I think
Adrian is maybe not the only one,
Please see PIPER page A13
FIRST WE FEAST (5); COURTNEY COLES FOR THE WALL STREET JOURNAL (CENTER)
THE WALL STREET JOURNAL.
.
THE WALL STREET JOURNAL.
A12 | Wednesday, March 28, 2018
MY RIDE | By A.J. Baime
A 1918 Buick Celebrates a Birthday
Carol Hein, 72, a retired
teacher from Prescott, Ariz.,
on her 1918 Buick E-35, as
told to A.J. Baime.
This year our family
Buick turns 100 years old. I
have an idea to call the
folks at our local service
station and tell them I am
bringing in an ’18 Buick for
an oil change, then take it
down there just to see the
look on their faces.
The story of how this car
came into the family was
my mother’s favorite story.
My grandparents were
homesteaders in Montana,
and my grandmother’s
brother-in-law got this 1918
Buick as a gift. He was not
mechanically inclined (he
was a real cattleman). One
day he tried to drive the
Buick into town but could
not figure out how to make
it stop. He got so upset he
shouted to my grandparents, “Give me $15 and you
can have this thing!” So
they did. It was practically
brand new.
My mother grew up riding in and later driving this
car with her sister around
rural Montana, and her favorite memories were all
about the Buick. When I
grew up and moved away, I
would visit her and every
time, she would take me out
to the shed and ooh and ahh
over the thing. To me, it
was just an old heap, in terrible condition. There was
nothing attractive about it.
ADVERTISEMENT
Showroom
To advertise: 800-366-3975 or WSJ.com/classifieds
PORSCHE
LEASE
Carol and Scott Hein in period dress in the 1918 Buick E-35, which
has been in Ms. Hein’s family for three generations; far left, closeups of the steering wheel and the speedometer and odometer.
When my parents retired,
they dedicated themselves to
restoring the 1918 Buick.
They had to go back to the
old homestead to find some
of the parts; the backseat
they found in a field overgrown with wild rose bushes.
Every year, my husband,
two kids, and I would visit
Montana in the summer and
every year the car would
look a little better. My father was excited but my
mother—she was ecstatic to
see this car that had been
such a part of her childhood
come back to life.
My parents passed away
and the car came into my
possession, in 2003. My
husband Scott is a pilot and
he usually drives it. I get
nervous. If I screw up,
where will I find the parts
to fix it? When we are in it,
I feel the presence of my
grandparents and my parents. It truly is the family
vehicle.
Every year we drive the
car in our town’s July
Fourth parade, wearing period clothes. Since this year
marks the Buick’s 100th
birthday, the parade will be
extra special.
Contact A.J. Baime at
Facebook.com/ajbaime.
AVIATION
> 57 .
> ? 7 5/
> @ > # 2
The car was restored by Ms. Hein’s parents after years in storage. Below, the Buick’s original hood
ornament also serves as the car’s radiator cap and temperature gauge (a thermometer is built in).
:; "%0 <; % .7; -+
= ##: :
!"
#
!
$% &"%' (( )*+
#
,
-) .
-) /0 ,
12 - 0 12 3
* . 2 ,
-4,%
,
!%%
"""
4!%
,
5657 ) -
,
) -, ,
) -
!
) - &"%' (( )*+
) 8
"% + )
*6 *
"%!
*6 * 2
!
9076 SHOWROOM
ADVERTISE TODAY
(800) 366-3975 | sales.showroom@wsj.com
For more information visit: wsj.com/classifieds
BMW
!"#
© 2018 Dow Jones & Company, Inc. All Rights Reserved.
STEVE CRAFT FOR THE WALL STREET JOURNAL
LIFE & ARTS
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | A13
LIFE & ARTS
EXHIBITION REVIEW
Treasures Beneath the Waves
BY EDWARD ROTHSTEIN
PIPER
Continued from page A11
but she’s one of the most singular
and powerful voices,” Mr. Cherix
said. “And I think the fact that the
work is so coherent, for over 50
years, makes her quite unique in
that generation.”
Born and raised in New York,
Ms. Piper has lived in Berlin since
2005. She has studied and taught
philosophy, earning a Ph.D. from
Harvard University. The subject’s
influence can be seen in works like
“Food for the Spirit,” a 1971 series
of photographs she took of herself
in which she seems to fade from
view, something she has said was
prompted by a feeling she was disappearing while reading Kant’s
“Critique of Pure Reason.”
Ms. Piper, who is African-Ameri-
seen by Mr. Goddio and his Institut Européen d’Archéologie SousMarine (IEASM).
The first is Thonis-Heracleion,
which in the eighth century B.C.
was a huge port complex, incorporating an array of canals, quays and
sandbars. Relics of ceramics from
Italy, coins from Cyprus and metal
from the Persian Empire attest to
its cosmopolitan trade. It was also
a religious center to which new
pharaohs would come to be granted
power by the creator god, AmunGereb. Those immense stone statues come from that god’s temple,
which covered nearly 4 1/2 acres.
The city also became a center
for the worship of Osiris, a god
whose importance to these explorations—and to the exhibition narrative—is extraordinary. He appears here again and again, his
presence supplemented by finely
wrought artifacts from nonaquatic
Egyptian sources. The eldest child
of Earth and Sky, he introduced
agriculture and brought order to
Egypt. But his brother, Seth, god
of chaos, dismembered his body
and scattered its pieces. Isis,
Osiris’s wife, reassembled it and
can and racially mixed, has addressed race in several works, particularly those from the 1970s to
’90s, such as “Self-Portrait Exaggerating My Negroid Features”
(1981). The show, with works dating back to 1965, comes as race,
gender, instability and social attitudes have become explosive and
constant topics of debate.
“Over and over again Adrian
Piper is hitting on certain ideas or
certain strategies way ahead of
their time, or way ahead of when
they become politically expedient
to talk about,” Ms. Butler said. At
times, she added, people have even
questioned the dates of Ms. Piper’s
pieces, suspecting they are more
recent.
At the 2015 Venice Biennale, Ms.
Piper received the Golden Lion
best artist award for “The Probable Trust Registry.” The MoMA exhibition is her first U.S. museum
show in more than 10
years, but it comes as
museums across the
country are intensifying their efforts
around female and
nonwhite artists. A
partial list of what is
currently on view:
“Soul of a Nation: Art
in the Age of Black
Power,” a group show
at Crystal Bridges
Museum of American
Art in Bentonville,
Ark.; “Figuring History,” featuring contemporary black artists Robert Colescott,
Kerry James Marshall
and Mickalene
Thomas, at the Seattle Art Museum;
“Jean Shin: Collections,” a solo show at
through mummification brought
him back to life. The “Mysteries of
Osiris,” the most famous rites of
the Ancient Egyptians, were celebrated annually, re-enacting the
god’s rebirth and his rule over the
kingdom of the dead, thus assuring the annual flooding of the Nile,
upon which Egypt relied.
Until these excavations, these
mysteries were known primarily
from temple drawings, but here we
see relics from a ceremony that
used a sacred 3.5-mile waterway
leading to the other city Mr. Goddio discovered, Canopus. Displayed
on a wall is a chronological outline
of the nearly monthlong ceremonies. They began with the secret
priestly creation of Osiris effigies,
the bodies molded from barley
seeds and soil of the recently
flooded Nile. The seeds would
sprout and the figures would be
dried in the sun, wrapped in linen
and placed on the waterway in votive barques guided to Canopus.
Hundreds of artifacts dating from
the seventh century B.C. to the second century B.C.—some on display
here—have been found associated
with these rites, which, the exhibi-
© FRANCK GODDIO/HILTI FOUNDATION/CHRISTOPH GERIGK (PHOTO)
Clockwise from above: ‘The Awakening of Osiris’ (c.664–525 B.C.); slab
engraved with a ram-headed god Amun (sixth century B.C.); Divers with the
‘Head of Serapis’ (second century B.C.) on site in Canopus, Egypt
tion suggests, attracted crowds of
worshipers to see the procession of
boats with their divine cargo.
In a way, this exhibition—which
is part of a series that have toured
in recent years—is a counterpart
to those rites. Mr. Goddio and his
team are gathering the fragments
of an interred past and piecing
them together to bring them back
to a kind of afterlife. It is a rite
worth celebrating, though it is
bound to change over time, per-
haps in unexpected ways. As Mr.
Goddio puts it in a quote prominently displayed here, “We will
probably have to continue working
for the next 200 years.”
Sunken Cities: Egypt’s Lost Worlds
Saint Louis Art Museum, through
Sept. 9
Mr. Rothstein is the Journal’s
Critic at Large. Follow him on
Twitter @EdRothstein.
ADRIAN PIPER RESEARCH ARCHIVE FOUNDATION BERLIN
St. Louis
THE MAGNIFICENCE of the new
exhibition at the Saint Louis Art
Museum, “Sunken Cities: Egypt’s
Lost Worlds,” which displays centuries of artifacts from Ancient
Egypt, is not that of ornate gold or
disentombed mummies. It is more
startling and suggestive. Some 250
of these objects were discovered
during the past quarter century,
buried beneath the seafloor under
layers of silt and sediment, not far
from the Egyptian harbors of Alexandria and Aboukir Bay.
Usually we think of dry earth—
desert sand—as the preserver of
ancient secrets; but as we see, water can also preserve, specifically
those of the Nile mixing with the
Mediterranean, and central to
Egyptian religion, ritual and agriculture. Yes, some surfaces eroded,
but for millennia no robbers disturbed these watery graves.
With the support of the Hilti
Foundation of Lichtenstein and the
Egyptian Supreme Council of Antiquities (now the Ministry of
State for Antiquities), beginning in
the early 1990s, the underwater
archaeologist Franck Goddio used
scientific instruments to detect
subtle shifts in the Earth’s magnetic field near the seabed, and sonar that penetrates below that
floor, to map an oceanic landscape
of ruins. Teams of divers uncovered stone sphinxes, pharaonic
statuary and figures of gods and
rulers, including the three immense and imposing statues that
here welcome visitors into the museum’s vast entrance hall. There
are also meticulously crafted gold
rings, stone shrines and sensuously draped goddesses.
We see videos and photographs
of their resurrection, as divers in
red neoprene suits peer through
turbid water, clouds of seaweed
and schools of fish, vacuuming detritus into an enormous tube. In
one video, we discover, with them,
what seems at first to be an encrusted, grotesquely pitted rock
half submerged. It is now shown,
cleansed and unmarred: a bust of
Neilos, god of the Nile (c.
100-200), his curled waves of
beard and hair framing a muscular
face—a god made of dark graywacke sandstone, eerily well preserved amid the overflow of waters he once ruled.
But this show, which has traveled internationally (it has been
seen in Zurich, London and Paris)
is not just a collection of artifacts.
Mr. Goddio, from the start of his
work in Egypt in 1992, also used
historical testimony to help discover the remains of a region regularly assaulted by earthquakes
toppling its treasures. These
sources referred to two ancient
cities; their rediscovery and gradual resurrection have been over-
Ms. Piper’s 2003 work, ‘Everything #2.8.’ above, and, from 1981, her ‘Self-Portrait Exaggerating My Negroid Features.’
the Philadelphia Museum of Art by
the American artist, who is of Korean descent; and “Take My Breath
Away,” a survey of the work of
Danh Vo, whose family fled Vietnam in 1979, at the Solomon R.
Guggenheim Museum.
At MoMA, curators have been
examining the recent past and at
times asking “what have we maybe
missed,” Mr. Cherix said. Ms.
Piper’s influence on younger artists is unmistakable, said Ms. But-
ler, who previously worked with
her while curating the 2007 show
“WACK! Art and the Feminist Revolution” at the Museum of Contemporary Art, Los Angeles.
“There haven’t been that many
opportunities to see her work in
any depth in this country, so I’m
not sure the average viewer knows
how influential she is,” Ms. Butler
said. “Her impact, particularly on
a generation of artists from the
’90s to the present, has been abso-
lutely huge.”
The curators cited Glenn Ligon—with solo shows at the Whitney Museum of American Art and
Walker Art Center in Minneapolis
and who last year curated “Blue
Black,” a critically lauded exhibit
looking at race at the Pulitzer Arts
Foundation in St. Louis—as one of
those artists. Asked about her influence, Mr. Ligon said: “Adrian
Piper taught me the words ‘artist’
and ‘citizen’ are synonymous.”
.
THE WALL STREET JOURNAL.
A14 | Wednesday, March 28, 2018
SPORTS
NCAA TOURNAMENT
MATT LUDTKE/ASSOCIATED PRESS
Kansas’ Mediocre Defense
Jayhawks coach Bill Self has called his team’s defense as ‘average at best’ but they are succeeding
BY JARED DIAMOND AND
RACHEL BACHMAN
NFL
A RULE TO LIMIT
HELMET-TOHELMET HITS
BY ANDREW BEATON
ORLANDO—The NFL took a step
toward adopting a “targeting”
rule, with the approval of changes
that toughen enforcement on hits
initiated with the crown of the helmet—and an expectation that, before next season, more overhauls
will be adopted to review hits that
could result in a player’s ejection.
The change comes after a record number of concussions in
2017—291, from the preseason
through the Super Bowl—and continued safety concerns about the
game. In the last season, league
data also showed a rise in concussions resulting from helmet-to-helmet hits.
Previously, there had been conditional language in the rule but
now “if you lower your head to
initiate contact, and you make contact with an opponent, it’s a foul,”
said Atlanta Falcons President and
CEO Rich McKay, who chairs the
league’s competition committee.
The change removes language
such as if the contact were “incidental” or “flagrant.” Players who
initiate this type of contact—which
can be defensive or offensive players—can be ejected. Although that
had been the case, officials rarely
did so.
In a dramatic instance this
past season, Steelers star linebacker Ryan Shazier suffered a
severe spine injury after a
head-on collision.
In college, when players face
ejection for targeting, defined as
hitting opponents above the shoulders or using the crown of the helmet, it immediately goes to review.
The league did not implement a
similar system yet, but the expectation is that the league will explore that before another round of
meetings in May. NFL coaches supported the idea that some of these
hits should result in an automatic
ejection, McKay said, but that they
just haven’t fully fleshed out the
language for the exact procedures
of an automatic review system
“using what the college technique
has been.”
KYLE TERADA/REUTERS
THE LAST THREE times Kansas
reached the Final Four, the Jayhawks
boasted a dominating weapon that
propelled them to the top of college
basketball: a mighty defense.
The Kansas defense ranked
third-best in the country when the
Jayhawks played in the 2003 and
2012 championship games, according to the analytics website KenPom. In 2008, when Kansas won
the program’s third national title,
their defense finished No. 1.
That’s what makes this Final
Four version of the Jayhawks so
unusual—not just for Kansas, but
for nearly any team to advance
this far. The Jayhawks’ defense, a
hallmark of Bill Self’s tenure as
head coach, is decidedly mediocre.
It sits at No. 42 in the nation, far
behind such luminaries as Central
Florida, Evansville and Old Dominion, schools that didn’t even qualify for the NCAA tournament.
Even worse for Kansas is
what’s in store for it in San Antonio this weekend: a matchup with
Villanova, the best offense in the
sport. The Wildcats have averaged nearly 87 points per game
this season and made the thirdmost 3-pointers of any team in
men’s Division I history, routinely
shredding any defensive unit that
dared to stand in their way.
In other words, Kansas now has
to figure out how to slow down a
practically unstoppable offense
with a defense that doesn’t get all
that many stops.
“I think the key to having a great
season is winning when you don’t
play well, and the only way you can
do that is if you make other teams
play bad,” Self said. “And I don’t
think that we have been good at
that for the most part.”
Generally speaking, teams that
don’t defend very well don’t fare
very well in the tournament. Since
2002—as far back KenPom’s data
goes—the average Final Four participant ranked 15th in the nation
on defense coming out of the Elite
Eight. Teams that won the championship, on average, ranked 11th.
Over that span, only four Final
Four teams had a worse defense
than this year’s Kansas squad: Butler and Virginia Commonwealth in
2011—two of the more unlikely
Cinderellas in tournament history—as well as Texas and Marquette in 2003.
But in spite of all that, a defense that Self described after a
January loss to Texas Tech as “average at best” somehow hasn’t
stopped Kansas from succeeding.
KenPom considers the Jayhawks
the eighth-best team in the country, thanks in part to an offense
The Steelers’ Ryan Shazier suffered a
spine injury after a head-on collision.
Kansas defenders surround Duke
forward Marvin Bagley III in the paint
during Sunday’s Elite Eight game.
There’s No ‘D’ in Kansas
Final Four teams with the worst defensive rankings since 2002:
TEAM
YEAR
DEF. RANK
RESULT
Marquette
VCU
Butler
Texas
Kansas
2003
2011
2011
2003
2018
97
78
58
48
42
Lost national semifinal to Kansas
Lost national semifinal to Butler
Lost championship to UConn
Lost national semifinal to Syracuse
??
KenPom.com data 2002-2018. Based on points allowed per 100 defensive possessions.
Source: KenPom.com; WSJ
that ranks fifth nationally.
Kansas, a No. 1 seed in the tournament, has won its last seven
games, including an overtime
thriller over Duke in last Sunday’s
Elite Eight.
Against Villanova, the Jayhawks
will need to play even better.
“I do think our defense has improved quite a bit since early February,” Self said. “We know we’re
going to have to be great on that.”
The question now is how Kansas
has managed to win anyway, even
as its defense has lagged. The answer has to do with a radical shift
in strategy to compensate for a
lack of depth, particularly in the
sort of frontcourt options that
usually define Self’s teams.
The Jayhawks typically field
tall, long, defensive-minded rosters. This crop isn’t that. So last
season, Self embarked on a bold
experiment, putting four guards in
his starting lineup. The decision in
effect sacrificed some defensive
strength for scoring punch, and it
worked: Kansas earned a No. 1
seed and advanced to the Elite
Eight in last year’s tournament
with the 24th-ranked defense and
fifth-ranked offense.
Those deficiencies on the inside
continued this season, when Kansas found itself without the 6foot-10 Billy Preston, a top-10 recruit who wound up leaving the
university without playing a game
amid NCAA-eligibility concerns.
The four-guard lineup remained,
highlighted by leading scorer Devonte’ Graham, a 6-foot-2 senior.
Some opponents have taken advantage of the Jayhawks’ defensive
vulnerabilities. Going into his
team’s first game against Kansas
this season, Oklahoma State coach
Mike Boynton said he recognized
the Jayhawks lacked the interior
depth they had in the past. Therefore, they couldn’t afford to send
starters to the bench. (Self used
just two reserves in Kansas’ win
over Duke last weekend.)
“[Self] is protecting his guys
from foul trouble,” said Boynton,
whose team went 2-1 against Kansas this season. “Especially Devonte’ Graham can’t pick up fouls.
So they can’t be as aggressive as
maybe they once were. So they
back off in terms of pressuring.”
What little size the Jayhawks do
have, they haven’t always been
able to count on. Seven-foot sophomore Udoka Azubuike has averaged
23.5 minutes a game this season,
nursing injuries or shuttling to the
bench with foul trouble. In Kansas’
last two games, he fouled out.
In December, Arizona State
scored 95 points against Kansas in
a 10-point victory. The Sun Devils’
coach, Bobby Hurley, said they
were able to get inside against the
Jayhawks’ small lineup, which ultimately led to openings around the
perimeter. Arizona State connected
on 14-of-28 3-pointers that day.
“We were able to penetrate and
get in the lane,” which opened up
the outside shot, Hurley said.
“Kansas just couldn’t annihilate us
inside like Arizona would try to do
to us in our league play.”
More often than not, however,
Kansas’ unusual lineup has paid
off, a testament to Self’s coaching
prowess. Whether it works against
Villanova is another story.
“He’s been able to adapt and
play a totally different way than
he’s played the last 20 years,”
Boynton said.
The WSJ Daily Crossword | Edited by Mike Shenk
Weather
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
40s
30s
Vancouver
Van
10s
Edmonton
d
50s
Por
d
Portland
Salt
lt Lake
L
Ci
C
ityy
City
30s
San Diego
70s
50s
90s
Phoenix
Ph
80s
Denver
Santaa F
Fe
Albuquerque
Tucson
Tucson
70s
Topeka
Topekk
40s
60s
U.S. Forecasts
Ft. Worth
D
Dallas
Austin
A
Mobile
bil
50s
90s
100s
Augusta
A g t
40s
50s
t
Boston
60s
Philadelphia
Ph
hil d lph
hi
80s
Raleigh
l i h
Charlotte
C
h l tt
Columbia
C
b
Warm
Cold
T-storms
Stationary
Snow
Showers
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
46
63
95
92
78
42
47
79
90
47
47
Today
Tomorrow
Lo W Hi Lo W
37 r
48 37 s
51 c
66 50 s
77 c 101 65 c
80 t
93 79 pc
48 pc 68 40 pc
37 r
45 33 c
36 r
49 39 sh
63 pc 83 62 s
70 s
94 73 s
34 sh 45 37 r
29 c
46 35 sh
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei City
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Today
Hi Lo W
51 35 r
53 41 r
86 63 s
78 69 s
53 44 c
90 75 t
81 54 pc
82 56 s
46 36 r
70 47 pc
90 76 s
84 58 s
82 52 pc
62 48 pc
30 13 pc
93 73 pc
55 37 r
88 74 s
96 72 s
60 51 pc
80 71 pc
68 49 s
76 54 s
87 75 t
82 69 s
80 67 s
72 54 s
51 34 c
50 39 c
43 31 r
54 38 r
26
48
9
10
11
27
24
49
60
33
39
43
35
52
53
57
58
59
8 Kate and Jaclyn’s 26 Each
co-star on
28 Ore.’s highest
“Charlie’s Angels”
peak
14 Small initial
30 Chilling sound?
advantage
31 ___ favor
15 Link on many a
32
Some sweaters
corporate home
page
36 Automated
systems
17 Extensions
18 Like a famed film
falcon
38 City of northern
Honshu
19 Volleyball
position
40 Junk, e.g.
20 Mullah’s moolah
21 Rap sheet abbr.
22 When Velcro,
the Frisbee and
Tupperware
were invented
41 Rapidly
rotating
43 It propels
itself with
body waves
44 Wide receiver
Rogers
37 Her favorite
color is sort of
greenish, but
with more
dimensions
6 Wide awake
39 Prepared for a
drive
9 Rhyme
scheme for a
villanelle’s final
quatrain
42 Hire
46 Papal vestments
worn over albs
47 Must
48 Nile biters
12 Caused
concern for
13 Gravelly
50 Dev of “Lion”
45 Take off
16 Lightly char
47 Odorless gas
20 Gofer, often
52 Letter-shaped
fastener
48 Savory jelly
23 “Everything’s
fine!”
66
24 Follower of
Dionysus
4 Lonely place,
so they say
11 Ditch
MEET THE DOGS | By Alex Eaton-Salners
Across
1 Oakland location
35 Rapidly rotate
49 Swimmer who
won seven
gold medals in
Munich
64
65
3 Dispatched
10 Applies, as
antiperspirant
62
63
34 Dealer’s unit
8 Starve
44
51
2 Blue-ribbon
7 RB’s stat
47
56
61
34
40
46
50
33 Salsa
alternative
Down
1 Frat vowels
5 Ring master
32
38
55
25
29
31
42
13
21
28
37
12
16
23
41
Flurries
Tomorrow
Hi Lo W
49 34 pc
53 37 pc
87 63 s
78 69 pc
51 43 c
91 75 t
62 49 pc
80 56 s
50 41 r
60 42 pc
89 75 pc
76 53 pc
80 53 pc
56 49 pc
32 15 c
92 75 pc
54 40 t
88 74 s
98 75 s
63 52 pc
79 71 pc
66 46 pc
74 51 pc
88 78 t
82 69 s
82 68 s
72 52 s
48 33 r
50 40 r
41 33 sn
49 34 pc
8
20
22
36
Rain
7
19
80s
Ice
Tomorrow
Hi Lo W
48 33 c
86 65 s
65 54 c
85 61 s
60 40 r
48 39 pc
59 43 c
79 49 s
53 38 r
59 44 pc
73 52 s
61 31 s
55 45 c
44 31 pc
75 60 c
6
45
Jacksonville
70s
5
18
54
Miami
Today
Hi Lo W
61 34 pc
82 61 s
53 47 c
80 58 s
57 47 r
46 32 pc
58 41 c
77 50 s
58 45 c
59 40 sh
72 52 s
57 28 pc
53 42 c
51 26 c
64 53 c
4
17
70s
Orlando
l d
Tampa
3
15
30
100+
60s
2
70s
90s
Washington
hington
h
ngton D.C.
DC
Charleston
Charles
h
Richmond
h
d
50s
70s
New
ew
w Orleans
l
30s
Hartford
rtford
New
Yorkk
ew Y
Buffalo
Cleveland
Clevel d
h ill
Nashville
Jackson
Jackk
40s
1
14
51 Brings down
54 Hot stone
massage
setting
55 Bring up
57 See 53-Down
60 Rapper whose
#1 hit “Timber”
featured Ke$ha
62 Yellow No. 5 or
Red No. 40
63 Uncontaminated
64 Head writer
for “Eureeka’s
Castle”
65 Krakow coins
66 “Come on in!”
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
39 27 c
37 24 pc
Atlanta
78 58 pc 72 56 sh
Austin
67 53 t
80 51 pc
Baltimore
56 47 c
70 56 c
Boise
59 36 pc 59 39 pc
Boston
48 39 pc 51 44 r
Burlington
49 36 r
54 42 r
Charlotte
73 60 pc 79 61 c
Chicago
58 41 pc 46 33 r
Cleveland
51 42 c
54 34 r
Dallas
67 52 t
73 51 c
Denver
52 27 sh 52 30 sf
Detroit
55 42 pc 53 32 r
Honolulu
81 68 s
83 69 pc
Houston
80 63 t
82 58 t
Indianapolis
60 47 c
54 35 r
Kansas City
58 39 pc 52 31 pc
Las Vegas
77 57 s
79 59 s
Little Rock
65 55 r
71 44 r
Los Angeles
77 55 s
77 56 pc
Miami
78 70 pc 81 71 pc
Milwaukee
53 37 pc 46 31 pc
Minneapolis
54 27 pc 43 28 pc
Nashville
69 59 r
66 48 t
New Orleans
83 68 pc 76 60 t
New York City
52 44 c
54 49 c
Oklahoma City
57 42 sh 60 38 pc
Albany
A bany
ny
50s 50s
Memphis
phi
Atlanta
A
t
LLittle Rockk
Birmingham
i h
Houston
San
an Antonio
A
Honolulu
l l
Anchorage
A
h g
Lou
Louisville
LLou
St.. Louis
60s
Oklahoma
kl h ma City
C ty
70s
70s 80s
Detroit
t
Springfield
i fi d
Wichita
hit Kansas
City
60s
El P
Paso
10s 0s
20s
30s
Toronto
T
60s
Milwaukee
k
50s Des
es Moines
i
Chicago
h g
Cheyenne
Ch
h y
Pittsburgh
b h
Omaha
h
Indianapolis
d
p
Colorado
Springs
Las
Vegas
Ve
Ottawa
ttawa
oux FFalls
ll
Pierre Sioux
60s
70s
Los A
Angeles
Angel
40s
Mpls./St.
pls./St.
s / Paul
30s
30s
an Francisco
San
Montreal
t
Bismarckk
Billings
Boise
i
60s
20s
30s
Helena
Eugene
Reno
10s
Winnipeg
p
60s
Sacramento
0s
20s
Calgary
C ary
Seattle
<0
30s
25 Fruity
refreshments
26 “SOS” group
27 Figurehead’s
position
53 With 57-Across,
what you must
do four times to
solve this puzzle
56 ___ May
Clampett
58 Unit of force
59 Spotted
29 Locket shape
61 Frat address
31 Tropics tree
62 Sixth col., often
Previous Puzzle’s Solution
N
A
B
O
B
S
F
L
O
R
E
T
L
E
A
D
T
O
R
E
A
R
S
H O G
B A R B
O R E O
E L
M I N D
A S T E
R E E S
S E A T
WA D E
A
F A T A L
N
D G AM E
G
R E D
V A U
S E N S
E F R O N T
L E E P
S
L E G R E S T
S
A S C A
L U N C H G
P A S O
Y O U
T O P
R
R O OMM
E
P A N E S
S
S K I N
C
O
L
L
E
C
T
N
U
B
I
A
C
H
A
T
S
H
O
W
R
O
D
E
E
L
A
T
E
S
S
U
R
E
S
T
A
W
E
D
E F
K E
E B
T
R
Y
S
T
S
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | A15
OPINION
Big Tech Takes Us to the Unknown
If anybody
does not yet
understand
they are paying for their
“free” Facebook, Google,
BUSINESS
etc. by handWORLD
ing
over
By Holman W.
their private
Jenkins, Jr.
data for use
in advertising, please lead such people
gently out into the woods and
leave them there.
In truth, many of those now
canceling their Facebook accounts didn’t mind when their
Facebook data was used to sell
them pro-Obama messages.
They only mind when Facebook helps identify people potentially receptive to proTrump messages.
Then there are those who
see every untoward event as
the product of mommy and
daddy (i.e., authority figures)
letting them down. They wonder why Mark Zuckerberg isn’t
all-knowing and all-anticipating about a business-cum-social phenomenon that, like the
rest of us, he has never experienced before, whose nature
evolves unpredictably.
Fourteen years ago Facebook didn’t exist. Eleven years
ago it decided to let outside
developers tap user data (with
the user’s permission) for just
about any user-pleasing purpose. Four years ago it
changed its mind and curbed
this practice because it wanted
to exploit user data itself.
In between is when a Cambridge University professor
created an app and legally
obtained data on 50 million
Facebook users, which he improperly passed along to Cambridge Analytica, which appears not to have played any
big role in Donald Trump’s
campaign strategy (though
Facebook certainly played a
role, as it did in the campaigns of Hillary Clinton and
President Obama).
So is this scandal really
worth the attention we’re paying to it? It has always been
faintly mortifying to wonder
what conclusions Facebook or
Google algorithms draw about
us from our data, but their existence mainly manifests itself
in supplying us ads that might
be more useful and interesting
than the ads we’d otherwise
see. In return, we get services
that many of us find immensely useful, like Google
Maps or Facebook’s platform
for connecting us with people
we prefer to be only be lightly
connected with.
If it were not to be found
within a stone’s metaphorical
throw of a subject matter
called Donald Trump, the
Cambridge Analytica scandal
would amount to petty larceny: Facebook didn’t get paid
for data that might have been
used to target voters for political advertising.
Scandals without content
tend to burn fiercely but not
long. Then Mr. Zuckerberg and
his shareholders will have to
get back to the real question: Is
Facebook a fad or does its platform have lasting value?
This column was doubtful at
the time of the company’s 2012
public offering. Facebook is a
powerful engine for getting users to share their data, but we
thought it eventually would
need real news and entertainment businesses to provide
content against which to run
ads. And not the least reason
was because: “If Facebook
doesn’t do something useful
with all the user data it’s collecting, Congress and federal
regulators will have no reason
not to regulate away Facebook’s
ability to exploit user data.”
Facebook and Uber
are leading us where
we haven’t been
before, so let’s learn.
Mr. Zuckerberg has tried to
keep his company from being
deemed a publisher, therefore
liable for the content it transmits. Yet down this road may
lie the solution to Facebook’s
legitimacy crisis. Bluntly, politicians are friendly, even solicitous, toward news organizations precisely because they
decide what to publish, thus
whom to help or hurt.
Some have dragged in
Uber’s Arizona accident to suggest big tech companies are
running amok in antisocial
fashion. Let us understand: The
Uber accident was a true
breach of trust. Long before
driverless cars ferry us wherever we want to go, or even
emerge from basic development, the technology should be
able to thwart nighttime collisions with things the human
eye can’t see because the human eye is sensitive only to
light in certain wavelengths.
Investigations are under
way, but unless Uber’s radar
and lidar sensors turned themselves off, the problem was a
failure to interpret a pattern
of signals as an indication to
stop. Of course, the point of
putting driverless cars on the
road is to create such learning
opportunities. No, this doesn’t
mean Elaine Herzberg should
have been allowed to become a
human sacrifice to this effort.
But unlike the Facebook panic,
nobody seems to be succumbing to babyishness just yet; all
understand we are venturing
necessarily into the unknown
here.
Still, the questions should
be daunting. Complex software like that for self-driving
cars will never be capable of
testing comprehensively for
all conceivable states and configurations, so whether such
cars can even survive a tort
system like ours is doubtful.
Witness Toyota’s sudden-acceleration travesty, in which
courts seemed to put the onus
on the manufacturer to prove
a negative—the nonexistence
of some undetectable, unreplicable fault in its comparatively simple throttle-control
software.
Secondly, humans may not
be as replaceable for many
physical tasks (unlike office
jobs, which basically require
reading) as Silicon Valley visionaries believe. We can perhaps dial back the fear that
large numbers of drivers, say,
will soon be out of work.
The Case for Responsible Nationalism
Last
week
President
Trump moved
toward imposing $60 billion
in tariffs on
POLITICS Chinese imports. These
& IDEAS
actions, and
By William
the steel and
A. Galston
aluminum tariffs announced
earlier, are misguided. But that
doesn’t mean the status quo is
acceptable. Democrats and Republicans have long ignored the
economic distortions caused by
China’s irresponsible policies.
It didn’t have to be this way.
More than two decades ago,
Harvard economist Dani Rodrik
warned that globalization was
driving a wedge between workers who had the skills and mobility to prosper in the global
economy and those who did
not. The key challenge, he argued, was to make globalization
“compatible with domestic social and political stability”—that
is, to ensure that international
economic integration “does not
contribute to domestic social
disintegration.”
This wouldn’t be easy, Mr.
Rodrik stressed, because trade
“unleashes forces that undermine the norms implicit in domestic practices.” International
trade weakens the postwar social contract between American
employers and their workers.
Less-skilled workers often are
forced to accept lower wages,
inferior benefits and diminished
job security. Leading economists acknowledged that increased trade with lower-wage
countries would widen the gap
between highly skilled and lessskilled workers in advanced
economies, but they played
down the magnitude of these
effects.
Western policy makers embraced the Panglossian assumption that maximizing
open markets and minimizing
social policy would produce
better living standards for all.
The West assumed that its edge
in innovation and productivity
would enable it to dominate in
the 21st century as in the decades after World War II.
U.S. officials spearheaded
the negotiations that culminated in China’s accession to
the World Trade Organization
in 2001. Yes, China had a large
state-owned sector, used public
resources to encourage the private economy, and broadly subsidized its producers. But over
time, the thinking went, the
communists would see the folly
of propping up inefficient producers. The state sector would
shrink, and the market would
become more powerful. China’s
economy would converge with
the Western model, and its political institutions eventually
would evolve too.
Democratic and Republican
administrations then presided
over a flood of Chinese imports
that gutted entire sectors of the
U.S. economy. After a period of
stability in the 1990s, U.S. manufacturing employment shrank
by more than three million
between 2001 and 2007—before the onset of the Great
Recession, which destroyed
another two million jobs.
These developments hit rural
and small-town areas with particular force, creating the geographically concentrated sense
of abandonment and loss that
helped propel Mr. Trump to
the White House.
What now? The U.S. needs
to change its thinking. The
manufacturing horse is far outside the barn, and Mr. Trump’s
efforts to rein it in will yield
only modest results. Odds are
The excesses of
globalization are
real, but trade wars
aren’t the answer.
the U.S. will never regain the
level of manufacturing employment it sustained only 20 years
ago. Because corporations understand that competitiveness
requires steadily increasing
productivity, automation—not
protectionism—is the key to
the future.
Rather than weak attempts
to prop up American steel manufacturers, the Trump administration should focus, as it belatedly has begun to do, on the
forced transfer and sometimes
outright theft of American intellectual property. If necessary,
U.S. laws and regulations should
prevent American corporations
from yielding information about
technologies that will shape the
future in return for access to
China’s market. The long-term
cost of such practices far
exceeds the immediate gain.
These developments in trade
policy are part of a larger story.
As I argue in my new book,
“Anti-Pluralism: The Populist
Threat to Liberal Democracy,”
unmodulated internationalism
is breeding an increasingly unbridled nationalism. But there
is a middle ground.
National governments are
not required to value the citizens of other countries as
highly as their own. A degree
of self-preference is morally
justified and politically essential. Leaders in advanced countries are not obligated to practice global utilitarianism or lift
up the global poor at the expense of their working and
middle classes.
There will probably never be
a real world government. There
are no “global citizens.” People
belong to sovereign states with
different languages, cultures
and institutions. Free societies
are composed of citizens who
agree to share a common fate
and to work out their destiny
through accountable politics.
They undertake special responsibilities toward their fellow
citizens, and the policies of free
governments must take these
reciprocal commitments into
account.
There is a compelling case,
then, for responsible civic nationalism. This does not mean
indifference to human beings
who happen not to be Americans. Their interests have
moral weight, and they should
matter to Americans and the
U.S. government. America First
is immoral if it means America
only.
A Crisis Over Cricket Rocks Australia
By Tunku Varadarajan
I
f there’s one place many
Americans would want to
be from if they couldn’t
be from their own, it’s Australia. The countries share a
providential belief that theirs
is a land like no other. The
self-image of the traditional
Australian is like that of the
rural American, reflecting an
entitlement to open space,
small government, and the
Good Life. Americans tend to
see Australians as a purer
version of themselves, a sentiment to which the corny but
endearing “Crocodile Dundee”
played. Americans are also
grateful for the participation
of Australian troops in every
war the U.S. has fought since
the World Wars, including
Vietnam.
Yet there’s a side of Australia that’s always been beyond America’s grasp. The
countries don’t share a sporting culture, the national
games of each being largely
absent in the other. Unlike
Australia, the identity of
Americans isn’t tied to international sports; the competition that matters is domestic
and franchise-based.
Australians have vested every drop of sporting emotion
in their national teams, ever
since they began to play
cricket against England in 1877.
The sport mystifies
Americans, but they
love it Down Under.
Indians overthrew their imperial overlords by Gandhian political resistance; Australians
did so on the cricket field. Social historians agree that an
unbridgeable rupture between
Australia and the Mother
Country occurred in 1932,
when a touring English team
won a series of matches using
the unfair tactic of targeting
batters’ bodies with the ball.
Australia is currently in a
meltdown of a kind seen in
America only when a president is impeached. The captain of its cricket team, Steve
Smith, on Saturday confessed
publicly to cheating. One of
his players had been caught
on camera scuffing up the
cricket ball in a game against
South Africa. This is done to
get the ball to change trajectory in the air on the way to
a batter when bowled at high
speed, making it harder to
hit.
Mr. Smith confessed that it
had been his idea to tamper
with the ball, the worst form
of cheating in cricket. “Say It
Ain’t So, Steve,” the headlines
wailed. It was so. Mr. Smith
was denounced publicly by
Australia’s prime minister,
even as grizzled retired players joined in a chorus lamenting the tarnishing of Australia. Mr. Smith faces severe
punishment, possibly a lifetime ban.
Australia, a vast land with
few people, measures its selfworth by the success of its
sports teams. In cricket, the
Aussies have a reputation as
hard men who swear at opponents on the field. They call it
“sledging,” and it disconcerts
players from more genteel
cricketing cultures.
Australia’s cricketers are
highly skilled bullies, and the
Aussie public hasn’t minded
this on-field loutishness because it accords with their
view that Australians are tough
blokes who play to win. There’s
nothing in cricket’s rules, Australians say, to prevent a
fielder questioning a South African batsman’s parentage, or
his wife’s fidelity.
Scuffing up the ball, however, is cricket’s equivalent of
child abuse. Real men don’t
do that. And since no man is
more real than an Aussie man,
Mr. Smith has to go.
Mr. Varadarajan is a fellow
at Stanford University’s Hoover Institution.
BOOKSHELF | By John Steele Gordon
A Royal
Renaissance
Francis I
By Leonie Frieda
(Harper, 352 pages, $29.99)
W
hen Francis I was born in 1494, no one thought he
would become king of France. He was, after all,
only a third cousin of the reigning king, Charles
VIII, who was just 24 years old and in good health. But
Charles’s four children all died in or near infancy, and the
king himself suddenly died in 1498. The throne then went to
Louis XII, a cousin of Charles’s. Louis, 35 when he came to
the throne, tried valiantly to sire a son and heir, even
marrying a third wife just three months before his own death
despite his rapidly declining health. But he failed in his
mission, and his two daughters were debarred from the throne
by law. Thus in 1515 it came about that Francis, at the age of
20, became king. As Leonie Frieda shows us in “Francis I: The
Maker of Modern France,” a
superb and vivid biography, he
made the most of it.
Tall and charismatic, if not
handsome—he was known as
“le Grand Nez”—Francis was a
naturally commanding figure.
The kingdom he had inherited
was still medieval in many
ways, and Francis was
determined, as Ms. Frieda
makes clear, to bring the new
learning and styles of Renaissance Italy into his country.
His first coup was to
persuade Leonardo da Vinci to
move to France, where he became
First Painter, Engineer and Architect to
the King. Leonardo, old and paralyzed in his
right arm, was unable to do much more than talk
frequently with the king, though he did bring the “Mona
Lisa” with him. Throughout his reign, Francis dispatched
agents to Italy to find paintings and sculpture for the royal
collection, which now forms the core of the Louvre museum.
A distinctive French style of Renaissance architecture
developed during Francis’s reign, as exemplified by Chambord,
his magnificent (though uncompleted) château in the Loire
Valley. He greatly improved two other royal châteaux and
rebuilt Fontainebleau and the Louvre, turning the latter from
a gloomy medieval fortress into the Renaissance structure
we know today. Francis also encouraged French literature—
Rabelais was one of the writers who benefited from his
patronage—and he vastly expanded the royal library, which
he opened to scholars.
But Francis was also an eager player in the game of
European power politics, along with his contemporary
monarchs Henry VIII of England and Charles V of the Holy
Roman Empire. Ms. Frieda neatly captures his very
different experiences with king and emperor.
In 1520, Francis met Henry VIII at one of the great
diplomatic parlays of history near Calais. The site came to be
known as the Field of the Cloth of Gold, because each side
spent fortunes (of mostly borrowed money) to outdo the
other in royal splendor and display. As for the diplomacy itself,
it amounted to little more than high-sounding proclamations.
Relations between England and France would veer between
friendship and enmity for the rest of their reigns.
He sent agents to Italy to find paintings for the
royal collection, now the core of the Louvre
museum. Other foreign initiatives went less well.
Francis’s enthusiasm for the game of power politics
would lead him into an epic geopolitical disaster at the
Battle of Pavia, in Lombardy, in 1525. The background was
one of revanchism and national pride. France had lost
control of the Duchy of Milan in northern Italy in 1512, and
Francis had invaded three years later at the head of his
army, winning a smashing victory. A king personally
leading an army was a throwback to medieval times, since
military technology and tactics had advanced considerably
with the development of artillery, requiring generals to be
professionals. Yet Francis, only a day past his 21st birthday,
attributed his success to his military talents, when it was
really the arrival of allied Venetian troops, in the nick of
time, that turned the tide in his favor.
Eight years later, having once again lost control of
Milan—to Charles V—Francis invaded again. This time he
was not so lucky. Not only did the French lose the Battle of
Pavia, but Francis himself was captured. He was the
prisoner of Charles V for over a year. Charles demanded
huge territorial concessions, including Burgundy, Lombardy
and Provence, which would have left France little more
than a rump state. Francis offered only money at first. But
as his captivity wore on, he finally accepted the Treaty of
Madrid (1526), in which he agreed to surrender Burgundy
and abandon all claims to Italy. He even allowed his two
older sons to be held as hostages in Spain until the terms
of the treaty were carried out.
No sooner was Francis back in France than he renounced
the treaty as having been negotiated under duress. His sons
would be held for more than four years. At first they lived
in luxury, but as Francis continued to refuse to implement
the treaty, they were subjected to increasingly harsh
conditions—until Charles and Francis agreed to minor
territorial concessions and a cash payment.
Ms. Frieda brings the world of Francis I to life, skillfully
delineating the moves and major players in both European
and domestic politics. People are sharply drawn, from
Henry VIII to Suleiman the Magnificent, the Ottoman
sultan. Of Pope Clement VII, who survived the sack of Rome
by Charles V’s troops only by the loss of most of his Swiss
Guard, she writes: “Clement might well have been
unworthy of such a sacrifice, but he remained pope, and so
it was for the office, rather than the man, that the 150
soldiers gave their lives.”
Ms. Frieda also gives the reader wonderful glimpses of
the often licentious court life of that time. Having taken as
his second wife (for purely political reasons) the physically
unattractive sister of (yes) Charles V, he soon showed his
real opinion of her. As the new queen formally entered Paris
after her coronation, the king stood in a prominent window
shamelessly cavorting with his maîtresse-en-titre. As for his
legacy, Ms. Frieda suggests that, under Francis I, France
preserved its political power, greatly increased its cultural
influence, and positioned itself for the Grand Siècle that his
Bourbon successors would soon preside over.
Mr. Gordon is the author of “An Empire of Wealth:
The Epic History of American Economic Power.”
.
THE WALL STREET JOURNAL.
A16 | Wednesday, March 28, 2018
OPINION
O
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
Breaking the Schumer Stall
Persecuted for Pointing Out Obvious Truths
ne underreported story of the Trump mittee voted unanimously to approve the nomiPresidency is how Democrats have nation of Kevin McAleenan as commissioner of
abused Senate rules to block political U.S. Customs and Border Control. He didn’t get
appointees from taking their
a full Senate floor vote until
If Democrats insist on last week, and only after cloposts. Senate Republicans
have been too slow to press 30 hours of debate, then ture. The Senate has failed to
the issue, though they are ficonfirm ambassadors to 25
make them stay in D.C. nations. It is also sitting on Ylnally working on a way around
Minority
Leader
Chuck
eem Poblete, who was nomiSchumer’s obstructionism.
nated in October to be AssisOklahoma Republican James Lankford is tant Secretary of State for Arms Control
reaching out to Democrats to change a rule that Verification and Compliance and is supposed
allows 30 hours of Senate debate for every pres- to represent the U.S. in international talks
idential nominee. Liberals are abusing that about Syrian chemical weapons.
privilege, invoking it even for nominees with
White House Press Secretary Sarah Huckabroad bipartisan support. The Senate is sitting bee Sanders last week said 43% of Mr. Trump’s
on 78 nominees who have already been vetted nominees await confirmation, and there have
and passed out of committee but can’t get a been 102 fewer confirmations so far than in
floor vote.
even the slowest recent Administration.
One example is Richard Grenell, who was
Enter Mr. Lankford, who is working to reduce
nominated in September to be ambassador to the 30 hours of debate on executive-branch
Germany. Mr. Grenell has more than enough for- nominees (excluding cabinet secretaries) to
eign-policy experience as the longest-serving eight. This was the standard in 2013-2014 after
U.S. spokesman at the United Nations, and even Republicans then in the minority agreed to a resome liberal groups back him as an openly gay quest from Majority Leader Harry Reid, but that
conservative.
deal lapsed with the last Congress.
Yet when Majority Leader Mitch McConnell
Mr. Lankford needs 60 votes to change the
last week asked for unanimous consent to take rule for the remainder of this Congress; he’d
up Mr. Grenell’s nomination, Oregon’s Jeff need 67 for a permanent rule change. Mr.
Merkley objected. (Mr. Merkley has positioned Schumer and his progressive wing will balk, but
himself as the leader of the anti-Trump resis- Mr. Lankford is talking to Democrats who protance with visions of running for President— fess to care about national security, as well as
which proves that some people will believe any- those up for re-election in Trump states.
thing.)
It’s worth adding that Senate Republicans
Such objections trigger a cloture vote, which have been far too accepting of this Democratic
then sets off 30 hours of floor debate. Cloture stall. They’ve been griping about it for a year
votes used to be almost unheard of for nomina- to little effect. If Democrats want to insist on
tions other than judges. At this point in the past 30 hours of debate, then make them stay in
four presidencies combined, only 15 executive- Washington on Mondays, Fridays and even
branch nominees were confirmed after cloture. weekends to clear the nomination list. And
Yet in the current Congress, Democrats have al- make them work over recess too.
ready invoked cloture on more than 50 Trump
Older GOP war horses won’t like it, but Demnominees. Their goal is simply to slow the for- ocrats running for re-election will suffer more
mation of a GOP government and soak up valu- from staying in Washington. Our guess is that
able Senate floor time.
Mr. Schumer will soon come around to agreeing
In early December the Senate Finance Com- to the eight-hour compromise.
C
John Paul Stevens for the NRA
ritics often accuse the National Rifle As- tion of guns is legal under the Constitution, Jussociation of paranoia for arguing that tice Antonin Scalia wrote, but not restrictions
gun controllers want to eliminate the that would ban guns in common use.
Second Amendment. Well, be“That decision—which I reThe former Justice
ing paranoid doesn’t mean the
main convinced was wrong and
NRA is wrong.
certainly was debatable—has
wants to repeal the
Look no further than forprovided the N.R.A. with a proSecond Amendment.
mer Supreme Court Justice
paganda weapon of immense
John Paul Stevens, who is arpower,” Mr. Stevens wrote in
guing this week that the Parkhis op-ed. He added that “overland, Florida, students and their allies shouldn’t turning that decision via a constitutional amendsettle for mere restrictions on guns. They ment to get rid of the Second Amendment would
should lobby Congress and the states to abolish be simple and would do more to weaken the
the Second Amendment.
N.R.A.’s ability to stymie legislative debate and
“Concern that a national standing army block constructive gun control legislation than
might pose a threat to the security of the sepa- any other available option.”
rate states led to the adoption of that amendWe’re not sure what he means by “simple”
ment,” the 97-year-old former Justice wrote in since repealing the Second Amendment would
an op-ed published in The New York Times require a vote by two-thirds of Congress and
Tuesday, adding, “today that concern is a relic ratification by three-fourths of the states. Good
of the 18th century.”
luck with that, since even now most Democrats
Apparently Justice Stevens is still sore about in Congress won’t come out in favor of even an
losing the argument in the 2008 landmark gun- ban on so-called assault rifles, much less repeal
rights case, D.C. v. Heller. He wrote the dissent of the right to bear arms.
in that case arguing that the Second AmendBut give credit to the former Justice for honment was merely intended to support a militia, esty about what most gun controllers believe
not the individual right to bear arms.
deep in their progressive hearts: The right to
But he lost 5-4 as the majority held, with ex- own a weapon should be preserved for the
tensive citation from history, that the Founders state. Look for the NRA to use him as a spokesintended the right for individuals. Some regula- man more than it does Dana Loesch.
J
Europe Targets U.S. Asset Managers
ust what the world needs: another Euro- mented by other companies in the portfolio.
pean antitrust investigation. Competition
As one economics paper points out, the comCommissioner Margrethe Vestager says mon-ownership theory also misunderstands
the European Union’s office
how index funds compete.
Vestager turns her
that never sleeps is researchThey care more about delivering stock ownership, and the
ing low fees and better service
antitrust
cops
on
effort could eventually enthan they do the performance
stock ownership.
snare U.S. investment firms
of individual stocks in their
like Blackrock and Vanguard.
index portfolios. Other econoMs. Vestager is worried
mists have struggled to replithat large asset managers that own shares in cate the common-ownership findings on airmultiple companies within the same industry lines, especially after excluding business- or
blunt competition. “For those investors, fierce first-class fares or periods when bankrupt carcompetition [within the industry] might not riers were controlled by judges and creditors
seem so appealing,” she said last month. Given rather than equity shareholders.
her wide powers and history of overreach, don’t
This would merely be an academic food fight,
be surprised if Europe’s antitrust Javerts find but Ms. Vestager is threatening to turn it into
something they dislike no matter what eco- another EU regulatory fiasco. A new competinomic common sense or broader European in- tion crusade based on a flimsy economic ratioterests dictate.
nale, akin to her recent attempts to define low
Ms. Vestager referred in her speech to re- tax rates as illegal subsidies, would further unsearch concerning U.S. airlines, and she could dermine confidence in the EU’s rule of law.
have included American banks. Large asset
A full-blown investigation also would unmanagers such as Fidelity, State Street and oth- dercut the far more important European goal
ers own shares in most major U.S. air carriers, of creating a Capital Markets Union that
with stakes between 1% and 11%. Bank owner- would let Europeans trade financial services
ship is even more concentrated, with large asset across borders. European leaders know they
managers plus Warren Buffett’s Berkshire Hath- need broader and deeper capital markets to
away owning a combined 25% of most of Amer- spread the corporate-finance burden from
ica’s largest banks.
commercial banks.
Some economists claim this has driven airCommon-ownership critics argue for breakfares upward by as much as 10%, while also in- ing up large index-fund managers, limiting their
fluencing bank fees and interest rates on saving ability to invest in certain industries, or removaccounts. The theory is that common owners ing their proxy voting rights. If Ms. Vestager
and managers somehow collude—perhaps tele- does any of that—or even ties up the asset inpathically—to keep prices high.
dustry with a years-long inquisition—she’d
Yet the research is far from settled. For one thwart a more competitive financial system and
thing, it’s not clear how or why asset managers— limit investment services for Europeans. Ms.
and index funds especially—would meddle in Vestager may think this campaign will further
corporate pricing decisions. By definition, index whatever political aspirations she has after her
funds hold shares in a range of listed companies, current term ends next year, but she will look
many of which are hurt by price increases imple- more ambitious than smart.
Regarding Heather Mac Donald’s
“The Penn Law School Mob Scores a
Victory” (op-ed, March 19): How horrible to learn that my alma mater has
barred the first-year 1Ls course from
being taught by the wonderful Amy
Wax. Thirteen years ago, I took her
Civil Procedure course. Even then she
was known for her controversial
views, but all of the outside noise fell
away as soon as you entered the
classroom. Her course was the most
rigorous and challenging in the
school because she respected every
student and demanded excellence
across the board. That shouldn’t be
rare at a school like Penn, but it was,
and we loved her for it. Her seniorlevel classes were always oversubscribed, and when it came time for
our class to award a top teaching
honor, the vote was overwhelming:
Amy Wax. When I speak to more recent alumni and students, they’re
unanimous in singing her praises,
and the loudest are usually the ones
who didn’t agree with her. What a
shame that the administration has
caved to the pressure of a few and
decided to deprive future 1Ls of this
exceptional teacher.
ADAM HOBSON
Penn Law ’08
New York
Amy Wax’s ongoing battle with liberal colleagues reveals the ugly underbelly of academia and its intolerance
of opposing, conservative opinion.
Seventy-five years ago, George Orwell
warned that “the further a society
drifts from the truth, the more it will
hate those that speak it.”
NICK SPEAR
Phoenix
Penn’s founder, Benjamin Franklin,
would be mortified. Obviously the
Penn Law faculty isn’t interested in
truth.
MILES E. KUTTLER
Penn Dental ’70
Aventura, Fla.
As Ms. Mac Donald points out,
there is no academic interest in gathering evidence of pluses and minuses
in preference-based admissions because the matter is settled social science and the truth is established. The
same goes for 1950s bourgeois norms
(get married before having children,
get an education, work hard, avoid
substance abuse and crime) that forever rest in the dustbin of history. We
dare not speak their unholy names in
our progressive culture.
If Ms. Wax is being bullied, punished and ostracized for raising questions about progressive sacred cows,
does that mean that professors believe that out-of-wedlock births, dropping out of school, idleness, violent
crime and substance abuse are not
best avoided whenever possible?
The despicable treatment of Prof.
Wax is much more than an academic
disgrace.
MATT HALL
Gainesville, Fla.
CEO Pay Reporting: Anticapitalist Bludgeon
Regarding Robert Pozen and Kashif Qadeer’s “The Fix for Misleading ‘CEO Pay Ratios’” (op-ed, March
20): It isn’t the ratio that matters,
it’s the pay. That’s the whole point
of the requirement, that CEO pay is
too high and getting worse. I think
the efforts of the professors should
focus on solutions.
A midlevel manager who ascends
to the C-suite should not automatically be granted compensation of $10
million-$20 million. Let’s put teeth in
the ratio test and force public companies to provide an easy to understand
compensation package for each executive, and an easy to execute shareholder voting process.
GEORGE FOLEY
Huntingdon Valley, Pa.
The authors are trying to save the
drapes in a raging house fire. The requirement to present pay data for different categories of workers is entirely designed to shame some people
and markets. Those demanding this
pay data aren’t interested in markets
working efficiently and effectively.
They want these markets closed to
ensure some preferred politically correct outcome.
DAN PISENTI
Mill Valley, Calif.
The authors can twist the statistics
any way they want. They seem overly
concerned about the SEC methodologies but unconcerned that CEO pay
was 20 times that of the average
worker in 1950 and is 253 times today. I think many people would like to
hear a rational explanation for this.
MICHAEL P. CARTER
Savannah, Ga.
A further fix to this nonsensical
and politically motivated calculation
would be to calculate the pay ratio after tax. The median employee likely
pays no federal income tax, whereas
the CEO will give up roughly 39% of
his or her income if domiciled in a
zero-income-tax state and over 50% in
a high-tax state.
GEORGE ORBAN
Naples, Fla.
You won’t find this ratio in any serious economics or financial text because it is a political talking point,
not an economic variable. The true fix
is to eliminate such government interventions that waste resources, mislead and distract from the real issues.
JOHN EARLY
Ridgefield, Conn.
Mr. Early is a former assistant
commissioner of labor statistics.
That Other Large Complex Ike Warned About
In his review of recent books
about the life of former President
Dwight Eisenhower, Richard Rhodes
(Books, March 17) repeats the now
well-known warning made by President Eisenhower in his Jan. 17, 1961
speech about the “military-industrial complex.” It is important also
to recall another warning the president made in the same speech
about the need for universities in
the U.S. to maintain freedom and
independence from federal control
imposed by the government making
federal grants for research and
other programs and activities spon-
sored by the universities. The president said: “The prospect of domination of the nation’s scholars by
federal employment, project allocations and the power of money is
ever present and is gravely to be
regarded. Yet, in holding scientific
research and discovery in respect,
as we should, we must also be alert
to the equal and opposite danger
that public policy could itself become the captive of a scientifictechnological elite.”
EM. PROF. JOHN A . CLARK
University of Michigan
Bloomington, Minn.
Facebook’s Long and Happy ObamaCare and GOP Voters
Your editorial “Life Support for
Honeymoon Is Finally Over
Regarding your editorial “Facebook
Joins the Club” (March 20): Tell me
again why the New York Times and the
other media marveled over President
Obama using Facebook to datamine his
way to victory in 2012, but when Donald Trump won the presidency, it’s a
horror and scandal?
NICK CHICKERING
Whitefish, Mont.
Facebook and the other new tech
companies could enjoy their “halo effect” as long as it mostly benefited the
liberal left in politics. Think of Google’s
Eric Schmidt’s extraordinary access to
the Obama White House.
Once it’s discovered that President
Trump’s team has learned how to use it
as well, then it must follow that this
new technology can be defined as criminal. At that point we can be assured
that taxation and regulation will ensue.
ED KATZ
San Francisco
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
ObamaCare” (March 20) on Republicans continuing funding for ObamaCare explains a lot about the collapse
in Republican turnout in the recent
Pennsylvania election. If those voters
wanted Democrats to represent them,
they needn’t go to the polls.
MAX HENSLEY
San Antonio
Pepper ...
And Salt
THE WALL STREET JOURNAL
“You know they’re trying too hard
when the chef’s special is
Corn Dogs Bordelaise.”
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | A17
OPINION
By Robert B. Zoellick
T
he news that President
Trump plans to sit down
with Kim Jong Un offers a
perfect example of his style:
Mr. Trump surprised his
world-wide audience, put himself at
the center of attention, and took a big
risk, probably impulsively. Now the
drama has shifted to whether Mr.
Trump and Mr. Kim will actually meet.
And if so, when and where?
Haphazard diplomacy with North
Korea presents a real danger, so someone around Mr. Trump had better be
preparing for a complex negotiation.
Here are 10 steps to get started:
Trump needs to do his
homework before sitting
down with North Korea.
Here’s how to get started.
1. Identify the outcome Mr. Trump
wants to achieve. That may seem simple, but consider the range of possibilities. The U.S. could seek progress toward the peaceful unification of a free
Korea. Or it could accept the North Korean regime’s existence if Pyongyang
gives up nuclear and other weapons of
mass destruction, plus long-range missiles, while promising not to sell its
technology. Mr. Trump could focus on
North Korea’s threats or behavior—
whether toward the U.S., South Korea,
the region or the North Korean people.
The U.S. could demand that North Korea return people it has abducted from
other countries, especially Japan. The
bargaining will take sharp twists and
turns. Mr. Trump needs to know how
he will frame America’s initial demands and what he wants to achieve
over different time frames.
2. Assess, coldly and rationally,
America’s actual leverage. What pressures and inducements can be brought
to bear by the U.S., its allies, China
and Russia? Mr. Trump will have to
coordinate this leverage, which means
the White House must be prepared for
varying scenarios. Given the experience of past talks with North Korea,
expect extraordinary demands, breakdowns, walkouts and reversals of positions. Getting China and Russia to go
along will require Mr. Trump to consider trade-offs.
3. Bolster U.S. relations with South
Korea and Japan. These two allies can
help the White House achieve a successful negotiation—or deal with failure. (They are also the cornerstone of
future U.S. policy toward China.) That
means America must win and hold
public support in both countries.
Threatening to withdraw U.S. troops
from South Korea and diminish American trade can hardly help.
4. Decide on the negotiating process. The U.S. could negotiate directly
with North Korea. Or it could add
South Korea, which would give America’s ally standing and reduce the risk
of a split in the alliance. Or the U.S.
could revive the six-party talks—including Japan, China and Russia—
from previous negotiations. Mr.
Trump must decide whether his secretary of state should lead or whether he
wants to rely principally on officials a
step below. The White House should
AFP/GETTY IMAGES
10 Tips for Negotiating With Kim Jong Un
Kim Jong Un in Pyongyang, Jan. 17; Trump in Warsaw, July 6.
know whether it wants to use a stepby-step process to turn paper negotiations into realities on the ground. The
U.S. should look for ways to make
North Korean reversals impossible, or
at least difficult and costly.
5. Engage Congress. At a minimum,
Mr. Trump needs lawmakers’ support
as he embarks on this negotiation. He
may even need their votes to approve
a treaty or allocate funding.
6. Consider what Mr. Kim may
want. The North Korean ruler will get
an early bonus just by meeting as an
equal with Mr. Trump, which legitimates Mr. Kim’s rule. North Korea will
claim it is negotiating in good faith
and therefore the U.S. and its allies
should ease sanctions, offer piecemeal
concessions, and hold off stronger
measures. It will present itself as
standing for Korean nationalism and
South Korea’s leaders as Yankee lackeys. Mr. Kim could reach for unification on Pyongyang’s terms. He could
demand a peace treaty to conclude
the Korean War and an end to America’s alliance with Seoul. The U.S.
should expect, at a minimum, that Mr.
Kim will want to keep his nuclear
weapons and missiles to deter any
threat to his regime.
7. Decide what the U.S. is—and
isn’t—willing to trade. Demands are
just the start. Pyongyang may press
Mr. Trump to concede security guarantees, economic openings, or even
assistance from Seoul or others. On
the other hand, the U.S. needs to decide whether its alliance with South
Korea and the U.S. forces stationed
there are nonnegotiable.
8. Decide the minimum the U.S. will
be willing to accept from North Korea.
‘The Sequence’ Is the Secret to Success
‘Y
ou should wait until you are
older to date.” Growing up
in a working-class family in
China, I learned this at an early age.
Like many Asian parents, my mother
stressed the importance of working
hard and getting a good education
before beginning a family.
Having a child outside marriage
never crossed my mind. In the small
city where I grew up, it isn’t done.
Even today, less than 4% of births in
China are out of wedlock, and the
same is true in India, Japan and
South Korea. For the vast majority
of young adults in Asia, the path to
success clearly runs through education, work and marriage—in that order. Families, schools, media and society at large all reinforce that
message.
Go to school, work, marry,
have children. Why do we
fail to convey this message
to poor young people?
A similar path to success for
young adults exists in America.
Brookings scholars Ron Haskins and
Isabel Sawhill call it the “success sequence”: getting at least a highschool diploma, working, and then
marrying before having children—
again, in that order. But the message
isn’t much discussed on this side of
the Pacific—and when it is, it’s controversial. Liberals often dismiss it
as a right-wing notion. They
shouldn’t. Following the success sequence is associated with a much
lower chance of being poor and
much better odds of realizing the
American Dream.
Tracking a cohort of young adults
from their teenage years to early
adulthood in the National Longitudinal Survey of Youth, sociologist W.
Bradford Wilcox and I recently tested
how well the three success sequence
“steps” work among the millennial
generation. We found that at ages 28
to 34, 53% of millennials who had
failed to complete all three steps
were poor. The poverty rate dropped
to 31% among millennials who completed high school, 16% among those
who had a diploma and a full-time
job, and 3% for millennials who also
put marriage before the baby carriage. Among childless and unmarried millennials 28 to 34 who followed the education and work steps,
the poverty rate was 8%.
In regression models that predict
the odds of being in poverty after
controlling for a range of background factors—including intelligence, childhood family income, race
and ethnicity—the probability of
ending up poor was reduced by 60%
for millennials who married before
having children and by about 90%
for millennials who followed all steps
of the sequence compared with those
who missed all three.
More important, the success sequence benefits young adults from
low-income backgrounds. Among
young adults who grew up in low-income families, those who followed
all three steps had a poverty rate of
only 6%, compared with 35% for
their peers who missed one or more
steps. Eighty percent of those with
lower-income backgrounds made it
into middle- or upper-income brackets when they followed all three
steps, versus only 44% for those
who missed one or more steps.
The bad news is that young
adults from less privileged families
are much less likely than those
from upper-income families to follow the sequence. Our study found
that some 68% of millennials age 28
to 34 who grew up in the bottom
third of the income distribution
missed one or more steps in the sequence, compared with only 35% of
their peers from upper-income families. Nearly half of young adults
from lower-income families had
children out of wedlock, versus only
19% of their peers from upper-income families.
This divide is troublesome. It’s
an important example of the how
the American upper class is “hoarding the American dream” for itself,
as Brookings scholar Richard
Reeves has argued. Young adults
from more-privileged backgrounds
generally get the message from parents, peers and teachers that they
need to get a degree, work and
marry before having children. And
most of them act accordingly. But
this message doesn’t filter down to
young adults from poor and working-class families, among whom unmarried parenthood is more than
twice as common as in the upper
middle class.
One high-school student, the
daughter of a single mother, recently
told me she was aware that teen
pregnancy was a bad idea. But the
idea that school, work, marriage and
childbearing form a sequence that
leads to success was new to her: “No
one in my school talks about this,”
she said. “My mom never said anything either.”
It’s time to stop hoarding the success-sequence message and start
sharing it with those who need it
the most. As we have done with teen
pregnancy, we need to teach the success sequence in our schools, incorporate it into MTV shows, and launch
media campaigns targeting young
adults from poor and working-class
communities with the message that
some ways of entering adulthood are
more prudent than others.
In this way, the U.S. could learn a
thing or two from the wisdom of the
East.
Ms. Wang is director of research
at the Institute for Family Studies.
Mr. Zoellick is a former World
Bank president, U.S. trade representative and deputy secretary of state.
Notable & Quotable
From a March 16 Boston Globe
summary of a study published in Nature Human Behaviour:
According to an analysis of polling
data for both the US and French
presidential elections, asking respondents how their acquaintances would
vote was generally more effective at
predicting the outcome than asking
respondents about their own voting
intentions. In fact, social-circle estimates were “more successful than
both own-intention questions and aggregate polls in predicting winners of
the five swing states that unexpectedly went to Trump (Florida, Michigan, North Carolina, Pennsylvania and
Wisconsin). They predicted four of
these states correctly, compared with
three by own-intention questions and
zero by aggregate polls.” And socialcircle estimates showed a shift toward
Trump in the weeks leading up to the
election that was not revealed by
own-intention questions.
AIR
SEA
NAVITIMER 1
By Wendy Wang
Mr. Trump attacks the Iran deal for
failing to roll back Tehran’s nuclear
program, ignoring its missiles, lifting
limits over time, and turning a blind
eye toward its other aggressive behavior in the region. If he wants to
avoid making a similar deal, the U.S.
and its allies should agree on what
will prompt them to walk away from
North Korea.
9. Be prepared for no agreement.
The U.S., South Korea and Japan
should have a plan in case the talks
fail. Should South Korea maintain its
outreach to the North as a way to
build confidence and ease tensions?
Mr. Trump may prefer to isolate
Pyongyang. The U.S. could press for
tighter sanctions to choke North Korea or even threaten military action if
Mr. Kim crosses “red lines.” If Mr.
Kim can divide the U.S. from its partners, he will have achieved a great
success.
10. Get Mr. Trump to agree that he
won’t wing it. Attending a summit and
making news are not the same as getting results. The president’s advisers
need to run through this preparatory
list—or a better one—with him.
D
LAN
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch
Robert Thomson
Executive Chairman, News Corp
Chief Executive Officer, News Corp
Gerard Baker
Editor in Chief
Matthew J. Murray
Executive Editor
Karen Miller Pensiero
Managing Editor
Jason Anders, Chief News Editor; Thorold Barker,
Europe; Elena Cherney, Coverage Planning;
Andrew Dowell, Asia; Neal Lipschutz, Standards;
Meg Marco, Digital Content Strategy;
Alex Martin, Writing; Mike Miller, Features &
Weekend; Shazna Nessa, Visuals; Rajiv Pant,
Technology; Ann Podd, News Production;
Matthew Rose, Enterprise; Michael Siconolfi,
Investigations; Nikki Waller, Live Journalism;
Stephen Wisnefski, Professional News;
Carla Zanoni, Audience & Analytics
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
WALL STREET JOURNAL MANAGEMENT:
Suzi Watford, Marketing and Circulation;
Joseph B. Vincent, Operations;
Larry L. Hoffman, Production
EDITORIAL AND CORPORATE HEADQUARTERS:
1211 Avenue of the Americas, New York, N.Y., 10036
Telephone 1-800-DOWJONES
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Innovation & Communications;
Anna Sedgley, Chief Operating Officer
OPERATING EXECUTIVES:
Ramin Beheshti, Product & Technology;
Jason P. Conti, General Counsel;
Frank Filippo, Print Products & Services;
Steve Grycuk, Customer Service;
Kristin Heitmann, Chief Commercial Officer;
Nancy McNeill, Advertising & Corporate Sales;
Christina Van Tassell, Chief Financial Officer;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher;
Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
BREITLING BOUTIQUE
NEW YORK • MIAMI • ORLANDO
SAN ANTONIO • LOS ANGELES
LAS VEGAS • WASHINGTON DC
DENVER
.
A18 | Wednesday, March 28, 2018
THE WALL STREET JOURNAL.
Can a cloud
actually make
flights smoother?
Airlines use the IBM Cloud
to integrate customer proˇles
and analyze maintenance
data from IoT sensors to help
increase on-time departures.
For millions of travelers,
itís an upgraded experience.
ibm.com/smart
IBM and its logo, ibm.com, IBM Cloud and Let’s put smart to work are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. ©International Business Machines Corp. 2018.
.
PERSONAL TECHNOLOGY: RANKING THE BEST $1,000 WINDOWS LAPTOPS B5
BUSINESS & FINANCE
THE WALL STREET JOURNAL.
© 2018 Dow Jones & Company. All Rights Reserved.
S&P 2612.62 g 1.73%
S&P FIN g 1.98%
S&P IT g 3.47%
DJ TRANS g 1.85%
WSJ $ IDX À 0.27%
LIBOR 3M 2.302
Wednesday, March 28, 2018 | B1
NIKKEI 21317.32 À 2.65%
Deutsche Bank Cools on Its Chief
Lender reaches out to
external candidates
after internal friction
with CEO John Cryan
BY JENNY STRASBURG
tering into long-term financing
or advisory relationships.
Pressure has risen on Mr.
Cryan and other Deutsche
Bank executives after the
lender recently missed costcutting targets and its finance
chief warned last week about
weaker-than-expected firstquarter investment-banking
revenue, investors and others
close to the bank say. Morale
and retention are bruised, employees and investors say.
Deutsche Bank shares have declined about 29% this year.
Mr. Cryan said publicly last
month that he remained committed to his contract. Mr.
Cryan and Mr. Achleitner, who
is traveling this week on vacation, didn’t respond to re-
quests for comment. A
Deutsche
Bank
spokeswoman said the men wouldn’t
comment.
Deutsche Bank supervisoryboard members, like many investors, have been divided in
recent months over whether
the lender should explore replacing Mr. Cryan and about
the strength of internal candidates for the job, some of the
people said.
Investment-banking co-head
Marcus Schenck, retail- and
private-banking head Christian
Sewing and finance chief
James von Moltke—all German—are viewed by supervisory-board members as potential CEO candidates, but aren’t
uniformly seen as prepared to
take on the job right away,
people close to the bank say.
Some supervisory-board
members remain supportive of
Mr. Cryan and are concerned
that a move to recruit CEO
candidates undercuts him at a
difficult time, according to
people familiar with the matter. Some say even a strong,
new chief executive from outside would bring risks, such as
integrating with other executives and navigating Deutsche
Bank’s particularly difficult
regulatory, technology and expense-control hurdles.
Mr. Cryan’s supporters on
the board, inside the bank and
among investors credit him
with settling crucial legal matPlease see CEO page B2
MICHAEL HANSON FOR THE WALL STREET JOURNAL
Deutsche Bank AG’s chairman has reached out externally to potential candidates to
be the bank’s next chief executive, gauging interest in replacing John Cryan after
months of clashes, according
to people briefed on the discussions.
The outreach by Chairman
Paul Achleitner was described
by one of the people as informal in nature, and it hasn’t re-
sulted in any immediate, definitive plans for succession at
the German lender. Another
person said the efforts picked
up steam in the past month.
The discussions raise the
possibility that Mr. Cryan, who
has been CEO since summer
2015, could leave before his
contract ends in 2020. Still,
members of Deutsche Bank’s
supervisory board aren’t all in
agreement on CEO succession
planning, according to people
familiar with board deliberations.
The lack of clear timing or
certainty in a management
change itself could be a risk to
the bank, some of the people
said, because clients like predictability, especially when en-
The U.S. government’s fight with the Chinese maker of telecom equipment threatens to hurt regional American phone and internet providers that use Huawei gear.
Rural Networks Feel Sting of Huawei Curbs
BY DREW FITZGERALD
AND STU WOO
Here is a potential casualty
of the U.S. government’s escalating fight against Huawei
Technologies Co.: rural phone
companies and internet providers that depend on the Chinese giant’s gear to connect
their customers.
Large wireless providers including AT&T Inc. have long
steered clear of Huawei, which
has been effectively barred
from big U.S. business since a
2012 congressional report alleged the Chinese government
Banks Are
Set to Gain
Relief From
Regulation
BY LALITA CLOZEL
WASHINGTON—Banks can
expect to see significant further easing from postcrisis
rules in 2018 after the final
Trump-appointed leader is
seated at the nation’s banking
regulators later this spring.
Jelena McWilliams, the top
lawyer at Cincinnati-based
Fifth Third Bancorp, is set to
succeed
Obama-appointee
Martin Gruenberg as head of
the Federal Deposit Insurance
Corp. as early as April.
When that happens, the
FDIC, the Federal Reserve and
Office of the Comptroller of
the Currency will be able to
move ahead on a number of
the Trump administration’s
policy priorities, such as making it easier for financialtechnology firms to enter
banking; easing restrictions
Please see BANKS page B2
could force the company to exploit knowledge of how its
equipment is designed to spy
or launch cyberattacks—a
charge Huawei has denied.
But many regional American providers of wireless, TV
and internet services have
flocked to Huawei, attracted
by what they say are Huawei’s
cheaper prices, quality products and attentive customer
service.
On Monday, the Federal
Communications Commission
proposed making it harder for
these smaller carriers to pay
for future purchases of tele-
INSIDE
STATE GOES
INTO REVERSE
ON UBER
TECHNOLOGY, B4
CHINA SENDS
ITS YUAN
SURGING
CURRENCIES, B13
com equipment from Huawei
and Chinese peers. The rule
would restrict companies from
drawing on an $8.5 billion
government-run fund that,
among other goals, helps connect rural America to the internet. The agency is now
seeking public comment on
the proposal.
Meanwhile, a congressional
bill with some bipartisan support aims to prohibit carriers
with any substantial amount
of installed Chinese telecom
equipment from gaining federal contracts.
Huawei, the world’s top
maker of cellular-tower electronics and a major manufacturer of equipment for cable
and internet providers, has
been actively courting smalltown internet companies that
wanted to replace old-fashioned landlines with highspeed internet connections—
no small feat in a country
where most rural residents are
stuck with dial-up speeds.
The company flew some clients to the company’s Shenzhen, China, headquarters, one
stop on a nationwide tour that
included visits to the Great
Wall and ancient Terracotta
Army, and delicacies such as
chocolate-covered duck liver.
“They were hungry to break
into the small market, and we
like dealing with hungry vendors,” said Jim Kail, chief of
LHTC Broadband, a mostly
rural internet provider in
Pennsylvania with 7,000 customers. “They put a concentrated effort into it.”
Mr. Kail’s company in 2014
bought several hundred thousand dollars worth of optical
network equipment—gear that
can transmit data hundreds of
times faster than a copper
Please see RURAL page B2
See more at WSJMarkets.com
Oracle
Defeats
Google
In Court
BY JAY GREENE
AND BRENT KENDALL
A federal appeals court revived Oracle Corp.’s multibillion-dollar copyright infringement claims against Alphabet
Inc.’s Google, in a ruling that
could give fresh legal muscle
to leading software makers
but hamper upstarts developing new applications for computers and smartphones.
The court ruled Tuesday
that Google’s use of Oracle’s
Java programming technology
wasn’t “fair,” a reversal of fortune in a case that dates back
to 2010, when Oracle alleged
Google’s Android smartphone
operating system infringed
copyrights related to Oracle’s
Java platform.
Oracle has sought as much
as $9 billion in damages previously. Oracle general counsel
Dorian Daley said in an interview that “the value has gone
up,” though the company
hasn’t come up with an updated number.
The appeals court ruling, if
it stands, could have a broad
impact on the software industry by limiting the “fair-use”
defense in copyright cases.
That could make it more
costly and technically complex
for developers to use Java and
other copyrighted software to
create new products, legal and
industry experts said.
“What we’ve learned here is
that the fair-use defense, used
in commercial contexts, has
limited application, even if at
the expense of potential technical efficiencies and interoperability,” said Christopher Carani, a partner at McAndrews,
Held & Malloy who teaches intellectual property law at
Northwestern University.
The Oracle case has been
subject to two trials. In the
later one, jurors ruled Google’s
use of the Java code was permitted as “fair use” under federal copyright law. The U.S.
Court of Appeals for the Federal Circuit on Tuesday overturned that. “There is nothing
fair about taking a copyrighted work verbatim and using it for the same purpose
and function as the original in
a competing platform,” the
court wrote in a 56-page opinion.
The ruling is a “very strong
endorsement of copyright protections,” providing assurances that investment in software development will be
protected, Oracle’s Ms. Daley
said. She dismissed concerns
that the ruling would curb innovation by adding costs and
complexity to software develPlease see ORACLE page B2
HEARD ON THE STREET | By Nathaniel Taplin
Commodities Can Weather a Tariff Bout
With the
U.S. and
China engaging in a tariffslapping exchange, this
might seem like a terrible
time for that most growthsensitive of asset classes,
commodities.
Investors shouldn’t be too
pessimistic.
Sure, oil and metals would
likely sell off sharply at the
outset of an actual trade
war. Copper already has, falling around 4% in March.
Still, if saner heads prevail—
and news of behind-thescenes trade talks between
the U.S. and China is encouraging—the current tensions
may not escalate into a fullblown trade war.
And even if tensions do
ratchet up, it might be a
commodities-buying opportunity, thanks to Beijing’s
likely response: another big
round of stimulus measures
that would push metals demand higher again.
To understand why a
Follow the Leader
China credit leads commodities and housing
Commodity price index
Change from a year earlier
30
40
25
30
20
China total financing
advanced 8 months
Property
investment
20
15
10
10
0
5
0
–10
2010
2010
Note: Commodity index set as Sept. 2008 prices = 20.
Sources: CEIC; Thomson Reuters
trade war might work for
commodities, consider the
backdrop: Now, the biggest
factor in those markets is
that the boost from the last
big Chinese stimulus, beginning in mid-2015, is wearing
off. Prices for commodities
such as copper and aluminum peaked in December,
well before the current trade
worries started undermining
risk appetite. Global trade
THE WALL STREET JOURNAL.
remains robust, but Chinese
credit growth, one of the
best leading indicators for
commodities, has been
trending noticeably weaker
since early 2017, as have
growth in housing starts and
investment. Meanwhile,
China’s President Xi Jinping
has made dealing with the
nation’s debt problem a priority.
That means another big
round of debt-fueled stimulus could take a while—unless, that is, China’s exports
tank thanks to a trade war.
The big trade rebound in
2017 was the key factor driving growth higher last year.
Absent net exports, growth
would have slowed by nearly
a percentage point instead.
The current hawkish tone of
the leadership on debt has
yet to be tested by a real
downturn in either exports
or the domestic housing
market.
In other words, the big
uptick in global trade—still
evident despite the clouds—
isn’t an unalloyed positive
for commodities as long as
China is tamping down
credit growth.
Conversely, a real trade
war might hit commodity
prices initially but raise the
probability of another big
round of Chinese stimulus by
early 2019.
Investors who bought the
dip in that case might find
themselves rewarded down
the line.
.
B2 | Wednesday, March 28, 2018
INDEX TO BUSINESSES
A-B
C-E
California Steel...........B3
Cambridge AssociatesB6
Carlyle Group.......B3,B14
CIM Group...................B6
Cisco Systems.............B2
Citigroup....................B12
Credit Suisse Group . B12
CVC Capital Partners..B3
Daimler........................B3
Eastern Oregon Telecom
.....................................B2
Elliott...................B3,B14
F-H
Facebook.......A1,B13,B14
Fifth Third Bancorp....B1
GGP..............................B6
GlaxoSmithKline.........B2
Golden Nugget..........A10
Goldman Sachs Group
...................... B2,B12,B13
Hewlett Packard.........B2
HNA Group..................B2
Hua Chuang...............B12
Huawei Technologies..B1
Hudson Pacific............B6
I-K
Icahn Capital.............B12
iHeart Media...............B3
Jaguar Land Rover......B3
JPMorgan Chase.......B12
KKR..............................B3
L-N
Lasalle Investment.....B6
Las Vegas Sands........A3
Lennar ......................... B6
LHTC Broadband.........B1
Macerich......................B6
Microsoft ............... B2,B5
MiMedx Group..........B14
Morgan Stanley........B12
Netflix.........................A4
Nippon Paint.............B14
NLMK Group ............... B3
Nokia...........................B2
Northrop Grumman....A3
Novartis.......................B2
Nvidia.....................A4,B4
O-R
Oracle .......................... B1
Park Hill Real Estate..B6
PPG Industries .... B3,B14
Red Hat.......................B2
Reis..............................B6
Rockpoint Group.........B6
Ryder System ............. B4
S-U
Samsung Electronics..A6
Sherwin-Williams.....B14
Simon Property GroupB6
Standard Life Aberdeen
.....................................B6
Taubman Centers........B6
Tesla...............A4,B4,B13
Thomson Reuters.......B3
Total ............................ B3
Twitter........................A4
Uber................A4,B4,B14
Unilever.......................B3
V-Z
Ventas.........................A4
Vereit...........................B6
Visteon........................B3
Water-Gen .................. A3
Wynn Resorts.............A1
ZTE..............................B2
INDEX TO PEOPLE
A-C
Achleitner, Paul .......... B1
Adelson, Sheldon........A3
Boltansky, Isaac..........B2
Cheung, Eddie...........B13
Cook, Tim..................B14
Cryan, John.................B1
D-F
Daley, Dorian .............. B1
Dimon, James...........B12
Duperreault, Brian....B12
Elshout, Mathieu........B6
Franell, Joe..................B2
Hancock, Peter..........B12
Icahn, Carl.................B12
K-M
Kail, Jim......................B1
Kaploun, Yehuda.........A3
Krafcik, John...............B4
Lloyd, Matt ............... B13
Long, Jay.....................B6
Marrison, Simon.........B6
McWilliams, Jelena....B1
Menna, Gil...................B6
Mirilashvili, Michael...A3
Mustier, Jean-Pierre...B2
G-I
N-Q
Galloway, Scott...........B5
Gnodde, Richard..........B2
Goldfarb, Alexander....B6
Gross, Bruce................B6
Nichols, Meagan.........B6
Pasik, Maxim..............A3
Paulson, John............B12
Petit, Parker H..........B14
BANKS
Continued from the prior page
on short-term consumer
loans; and relaxing the 2010
Dodd-Frank financial law’s
proprietary trading ban, the
Volcker rule.
Ms. McWilliams’s arrival
likely will coincide with the
completion of a bill in Congress aimed at easing crisisera banking regulations, another catalyst for changes to
the financial rule book.
“With Congress likely to
pass the only financial deregulatory bill for the near future, it will be the alphabet
soup of new regulators who
Lenders’ Rule Book
Is Set to Change
Here are several top policy
issues that the three regulators are likely to tackle first.
Volcker rule: Mandated
by Dodd-Frank, the rule bars
banks from speculative trading
or buying into potentially risky
investment funds. The five
agencies that enforce the
rule—the Fed, OCC, FDIC, Securities and Exchange Commission and Commodity Futures
Trading Commission—took
more than three years to agree
on a rule. While there is general agreement it needs to be
modified, all five will need to
agree on specific changes.
Staff recommendations are
expected by June.
Community Reinvestment Act: The 1970s law requires banks to invest in underserved communities near
their headquarters and
branches. Trump-appointed officials want to update the rules
governing the law to recognize
new types of loans and technologies that could help funnel
funding to low-income groups.
Small-dollar loans:
Trump officials have said they
want to encourage banks to
offer loan products that compete with payday lenders. The
OCC last year rescinded guidance that discouraged banks
CEO
Continued from the prior page
ters and improving relationships with regulators. They say
he deserves more time to follow through on plans Deutsche
Bank has already announced.
Still, even some supporters
criticize Mr. Cryan’s strategy
flip-flopping and often dour
demeanor.
Investors remain disappointed with Deutsche Bank’s
profitability and the lender’s
dominant trading and investment-banking units continue
to lose market share. Senior
executives across the bank
have split into factions over issues affecting investmentbanking strategy and bonuses,
Qu, Qing....................B12
R-T
Rufrano, Glenn............B6
Rupkey, Chris..............A1
Savage, Robert...........A4
Schenck, Marcus.........B1
Sewing, Christian.......B1
Stark, Michael.............B6
Suzuki, Dan...............B14
Taiclet, James.............A4
V-Z
Vanlancker, Thierry.....B3
von Moltke, James.....B1
Wu Xiaohui...............B12
Wynn, Steve...............A1
Zidle, Joe...................B14
Zuckerberg, Mark
........................... B13,B14
decide the tone and tenor of
the
new
deregulatory
agenda,” said Isaac Boltansky,
policy research director at
Compass Point Research &
Trading LLC.
While the overall pace of
regulatory change is expected
to pick up, having a full cast
of Trump-appointed officials
doesn’t mean they will necessarily be in sync on every issue. “Different agencies have
different perspectives,” said
Aaron Klein, a policy director
at the Brookings Institution.
Mr. Klein said the FDIC tends
to be more conservative on
safety and soundness matters
because when an institution
fails, the agency “is left holding the bag.”
from offering short-term loans.
The FDIC discourages statechartered banks from making
those same types of loans.
New banks: After the financial crisis, the number of
new banks dwindled to a few
a year, though efforts by the
agency to encourage new applications have resulted in an
uptick. Jelena McWilliams has
said she wants to speed up
new-bank approvals.
Financial technology:
Trump officials want to make
it easier for financial-technology firms to enter the banking
industry through specialized
bank licenses, which would let
them sell financial products
across the country and bypass
state-by-state licensing.
Leveraged lending:
Banking regulators told Congress last year that they were
re-evaluating guidelines issued
in 2013 that cracked down on
leveraged lending, or loans to
heavily indebted companies.
The Fed and OCC have already
signaled that they will give
banks room to do more leveraged lending as long as they
are appropriately capitalized.
The FDIC hasn’t gone as far.
Cybersecurity: The banking agencies issued a proposal
in 2016 to impose cybersecurity standards on large banks
and their service providers, but
never moved forward with it.
The regulators could decide to
go a different route.
according to people close to
the bank.
One internal debate causing
friction is whether the investment bank should further
shrink by shedding more products and markets than it already has. An ongoing review
of the markets and trading
businesses could lead to further scaling back, according to
people familiar with the matter. Some supervisory-board
members feel the bank under
Mr. Cryan hasn’t done enough
to persuade investors the investment bank can stabilize
revenues with its current size
or business mix.
Mr. Achleitner, a hands-on
chairman, has been a persistent critic of Mr. Cryan, and
tensions between them aren’t
new. The Wall Street Journal
BUSINESS & FINANCE
Novartis Exits Pact for $13 Billion
BY NATHAN ALLEN
AND NOEMIE BISSERBE
Consumer Boost
GlaxoSmithKline's consumer health-care revenue is set to rise after
the buyout of joint-venture partner Novartis.
GlaxoSmithKline
PLC
agreed to pay Novartis AG $13
billion for its 36.5% stake in
their consumer health-care
joint venture, moving to consolidate ownership just three
years after the two companies
joined forces.
The deal is the first significant strategic step for both
companies’ newly installed
chief executives, as they work
to reposition their respective
firms amid internal reviews
and deal making across the industry.
GSK Chief Executive Emma
Walmsley, 48 years old, has
been shaking up the company’s
drug-research efforts by reshuffling or letting go hundreds of executives and scientists since taking over about a
year ago. The move fits a trend
among big pharmaceutical
firms—including Novartis—to
refocus resources on the highrisk, but high-reward business
of discovering and bringing to
market new drugs.
Amid that push, both CEOs
have also been considering
how to reshape their businesses at the deal table. GSK
was among several companies
sizing up Pfizer Inc.’s large
consumer-health business, before opting last week not to
bid. Novartis, meanwhile, is
considering a sale or spinoff of
its Alcon eye business, while
Glaxo’s consumer health-care
unit revenue
2017 revenue by segment
£8 billion
Consumer
health care
26%
6
4
Pharmaceuticals
57%
£30.2
billion
2
0
2013
£1 = $1.420
’14
’15
’16
’17
Source: the company
also weighing options for its
U.S. generics business.
Novartis Chief Executive
Vasant Narasimhan, 41, on the
job just since February, has
similarly committed himself to
reinvigorating the company’s
drug-discovery pipeline.
As of this month, Novartis
could force GSK to buy it out of
their joint venture under terms
of the deal announced in 2014
and completed the next year.
“While
our
consumer
health-care joint venture with
GSK is progressing well, the
time is right for Novartis to divest a noncore asset at an attractive price,” Dr. Narasimhan
said in a statement. The proceeds of the deal will be used
to fund shareholder returns
Vaccines
17%
THE WALL STREET JOURNAL.
and pursue bolt-on acquisitions, he said.
Ms. Walmsley characterized
the deal as a way of anchoring
her own efforts at GSK to
boost research and development. The slower-growing, but
often steadier, sales from consumer-health products, like
toothpaste and over-the-counter cough and flu medicine, can
help offset the often more volatile business of creating and
marketing new drugs.
“Our number one priority is
the strengthening of our
pharma business and at the
heart of that is R&D and its
pipeline,” Ms. Walmsley said in
a conference call with reporters. This deal brings more certainty and “allows us the flexi-
bility to invest in R&D as
appropriate,” she said.
Ms. Walmsley ran GSK’s
consumer-health business for
more than five years before
taking over as CEO in April
2017. Her predecessor, Andrew
Witty, struck the deal with Novartis to combine their consumer-health businesses, creating a giant that brought
some of the world’s bestknown brands under one
roof—including Excedrin pain
medicine, antismoking aids like
NiQuitin and Theraflu cold
medicine.
The joint venture fit into a
series of transactions between
the two companies that allowed GSK to expand its consumer-health and vaccines
footprint, while Novartis
bought GSK’s cancer-drug business.
GSK said it expects the latest deal, when completed, to
boost earnings in 2018 and
strengthen cash flow. The company said it would also begin a
strategic review of its Horlicks
brand and other consumer-nutrition products with a view to
funding transactions. Most of
Horlicks and other nutritionproduct sales are in India, Ms.
Walmsley said.
The deal, which is expected
to close in the second quarter,
is subject to approval from
GSK shareholders.
On Tuesday, shares in GSK
rose 4.9% in London, while Novartis gained 2.1% in Zurich.
RURAL
Continued from the prior page
telephone line.
Many of these customers
now worry the new heat over
Huawei in Washington may
rob them of what has so far
been an important alternative
to Western suppliers. Others
worry that if Huawei exits the
U.S. completely, it will leave
them without the customer
and technical support they
need to maintain the Huawei
hardware they already own.
A Huawei spokesman declined to comment on the FCC
proposal. He said the company
is employee-owned and that
no government has ever asked
it to spy on or sabotage another country. Huawei said it
poses no greater threat than
its competitors, given they all
share a global supply chain.
Huawei products make up
less than 1% of the equipment
in American cellular and landline networks today, according
to research firm Dell’Oro
Group. A senior FCC official
said Monday that the government was concerned that it
was “not zero.”
Huawei’s standoff with the
U.S. government has been a
boon to Sweden’s Ericsson AB
and Finland’s Nokia Corp.,
which dominate the $30-billion-a-year market for wireless
equipment in the U.S. It also
shields domestic companies
like Silicon Valley’s Cisco Systems Inc., which make elec-
ORACLE
Continued from the prior page
opment. “No need to be
alarmed,” Ms. Daley said. “The
sky is not falling.”
The court sent the case
back for a trial to determine
how much Google should pay
in damages for the infringement.
“We are disappointed the
court reversed the jury finding
that Java is open and free for
everyone,” Google said in a
statement. “This type of ruling
will make apps and online serreported in October on clashes
between the two men over
strategy, style and their relationship with the bank’s top
shareholder, HNA Group Co.
Investors remain
disappointed with
Deutsche Bank’s
profitability.
At the time, people close to
the two men said it was good
for them to disagree at times.
But their relationship has
since deteriorated, people inside and outside the bank say.
Many investors also view
any risk to Mr. Cryan as a dan-
MICHAEL HANSON FOR THE WALL STREET JOURNAL
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
Advanced Micro Devices
...................................B12
Advent International..B3
Akzo Nobel .......... B3,B14
Alphabet
............. A4,B1,B4,B5,B14
Amazon.com...............A4
American International
Group.......................B12
Anbang Insurance Group
...................................B12
Aon..............................B6
Apollo..........................B3
Apple ... A4,A6,B4,B5,B14
ArcelorMittal .............. B3
Atotech Solutions.......B3
Bain ............................. B3
Bank of America
........................... B12,B13
Belkin International ... B4
Blackstone Group..B3,B6
BMW ........................... B3
Brookfield....................B6
THE WALL STREET JOURNAL.
* *****
Eastern Oregon Telecom has reduced expenses by using hardware from Huawei Technologies.
tronics such as routers for cable and internet providers.
Joe Franell, the chief executive of Eastern Oregon Telecom, said his company added
about 1,000 broadband customers after it took over unused cable lines that another
provider had abandoned. He
estimated that using new Huawei hardware on the previously offline system saved the
company at least $150,000.
“Our margins are pretty
thin,” Mr. Franell said. “If you
start dictating what kind of
equipment I can use, it tips
the scales.” He said he thinks
the new legislation making the
rounds in Washington is more
likely driven by nationalism
and protectionism than by real
concerns about hacking and
spying. ”I’m not going to rework my whole business plan
based off a rumor or an unsubstantiated allegation,” he
said.
Some politicians have
raised more specific nationalsecurity issues related to Huawei gear in rural networks.
Rep. Liz Cheney, the Wyoming
Republican, was the original
co-sponsor of a House bill to
ban the U.S. government—or
any of its contractors—from
using equipment from Huawei
or China’s ZTE Corp. The bill
now has 43 co-sponsors, in-
cluding four Democrats. Her
big concern: Troops at U.S.
military bases, which are
sprinkled across parts of rural
America that are often serviced by small carriers, could
be at risk.
“We cannot allow the Chinese government to use entities like Huawei to gain access
to our communications networks, including on our military bases,” Ms. Cheney said
in a statement.
It is unclear whether small
carriers using Huawei equipment directly provide service
to U.S. military bases. ZTE
representatives didn’t return
requests for comment.
vices more expensive for users. We are considering our
options.”
The case raises issues that
are crucial in the technology
world. The dispute centers on
how software developers use
application program interfaces, or APIs, which are prewritten packages of computer
code that enables programs,
websites or apps talk to one
another. APIs also spare developers the time and expense
needed to write fresh code.
In its suit, Oracle claimed
that Google illegally copied
more than 11,000 lines of software code from its Java pro-
gramming language to develop
its Android operating system,
which runs more than 2 billion
mobile devices world-wide.
APIs have helped the technology industry flourish by
enabling technologies to interoperate, Microsoft Corp.,
Hewlett Packard Enterprise
Co. and Red Hat Inc. noted in
a court brief filed in support
of Google. Those companies
argued that there is a “settled
understanding” about what
comprises fair use in the software industry, and any change
“would have a profoundly destabilizing effect on the entire
industry.”
Microsoft declined to comment on the ruling, and HPE
didn’t respond to a request for
comment.
A spokeswoman for Red
Hat, which develops opensource software and services,
said the company was “disappointed.”
The Business Software Alliance, a trade group, filed a
brief on Oracle’s behalf arguing that “computer programs
are like any other copyrightable subject matter: if they are
original, they are entitled to
full copyright protection.” It
didn’t respond to a request for
comment on Tuesday’s ruling.
ger to Mr. Achleitner’s position, given the chairman’s central role in putting Mr. Cryan
in that seat and supervising
the bank’s top executives.
It is unclear whether other
supervisory-board members
besides the chairman have
been directly involved in
reaching out to potential CEO
candidates. German corporate
governance features dual
boards. The CEO-led management board is directly responsible for strategy; the supervisory board appoints, oversees
and dismisses managementboard members.
The Times of London earlier
reported that Deutsche Bank
had considered external candidates as potential CEOs, including Jean-Pierre Mustier of
Italy’s UniCredit SpA and
Goldman Sachs Group Inc.
European executive Richard
Gnodde.
Mr. Achleitner spoke with
Mr. Gnodde directly in recent
months, a person briefed on
the matter said. A Goldman
Sachs spokesman declined to
comment. Mr. Mustier also
was approached within recent
months about his interest in
Deutsche Bank, a person close
to him said.
Earlier this year, Mr. Mustier told reporters that has a
“long-term commitment to
UniCredit” when asked about
any potential interest in going
to Deutsche Bank. A spokeswoman for Mr. Mustier reiterated that statement Tuesday.
Deutsche Bank is scheduled
to report first-quarter earnings on April 26.
DONATE STUFF.
CREATE JOBS.
TO FIND YOUR NEAREST
DONATION CENTER,
GO TO GOODWILL.ORG
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | B3
BUSINESS NEWS
BY CHESTER DAWSON
Luxury cars are shedding the
knobs, needles and dials once
needed to control the cabin,
opting instead for digital dashboards. But the software that
runs everything from speedometers to climate controls can
prove buggy, causing car buyers
to rethink just how modern they
want their cars to be.
Car companies that typically
charge a hefty premium have
issued recalls to fix glitches,
and regulators now pinpoint
software problems as being responsible for an increasing
number of malfunctions.
BMW AG, for instance, issued
a recall in January to address an
error that caused instrument
panels to not properly illuminate in certain 2018 model-year
coupes and SUVs. Jaguar Land
Rover has recalled about 30,000
vehicles in recent months for
digital-instrument
clusters
that may “intermittently go
blank” while being driven, according to documents filed
with the National Highway
Traffic Safety Administration.
The problems highlight a
struggle auto makers face as
they race to modernize vehicle
controls to more closely mimic
Digital Dashboards
Sales of vehicle cockpit display
systems*
$15 billion
2018 projection
$13.4 billion
12
9
6
3
0
2014
’15
’16
’17
’18
*Includes vehicle instrument clusters,
heads-up displays and center stack/
infotainment consoles
Source: IHS Markit
THE WALL STREET JOURNAL.
a smartphone or tablet.
One BMW owner in Dallas
filed a complaint about instrument-panel illumination to federal regulators in March of 2017.
“You can’t even read the speedometer or RPMs at a glance,
which is a safety hazard,” said
the owner, whose name was
withheld. BMW officials had no
immediate comment about the
recall. No injuries or accidents
have been reported in relation
to the glitch.
Four years ago, one-quarter
of the dashboard consoles supplied by auto-parts maker Visteon Corp. were partly or
wholly mechanical, but the company said that figure today is
less than 1%. One factor spurring that shift: cheaper LCDs, as
a result of an oversupply of
screens for tablet computers.
Daimler AG’s new Mercedes
A-Class hatchback, which the
company sells in markets outside the U.S., sports a sleek
“completely free-standing” wide
screen running across the dashboard. Twin 7- or 10-inch highresolution LCDs replace the recessed instrument cluster
behind the wheel, a first for the
premium German car brand.
The number of touch-screen
liquid-crystal displays using thin
film transistors installed in new
vehicles globally will grow to
200 million units by 2022,
nearly double the number in
2016, according to IHS Markit.
“Software complexity is increasing and we need to adjust
our processes accordingly,” said
Helmut Matschi, an executive
board member in charge of the
vehicle-interiors division at German auto-parts maker Continental Automotive GmbH.
In many cases, problems predate final assembly. BMW
traced its illumination problem
to software installed in a console made by Continental, and
Jaguar Land Rover identified
software in equipment from Visteon as the cause of blank
screens. Continental and Visteon
said they provided software
patches to fix the problems.
STUART PALLEY FOR THE WALL STREET JOURNAL
Buggy Software
Hits Luxury Cars
California Steel Industries can continue to buy duty-free slabs from steel producers in Mexico and Brazil after they won exemptions.
Steel Converters Fret Less
Tariff exemptions
ease concerns of
companies that rely
on imported slabs
BY BOB TITA
The Trump administration’s
decision to temporarily exempt
several countries from new
tariffs provides relief to some
of the largest U.S. customers
of imported steel: processors
of semifinished steel.
The U.S. imported nearly 8
million metric tons of such
steel last year, more than a
fifth of all steel imports. Most
arrived as the mattress-sized
slabs that are reheated and
rolled into sheet steel for
products including pipe and
automotive components.
California Steel Industries
Inc. said it was relieved it can
continue buying duty-free
slabs from Mexico and Brazil,
which were exempted from the
tariff. The company has produced pipes and sheet steel
near Los Angeles for more
than 30 years without making
any of its own raw steel. It
mostly stopped buying U.S.made slabs 15 years ago when
its lone supplier in the West
went out of business and it became cheaper to import the
steel from abroad than to ship
it from mills in the East.
“It’s a model that’s worked
for us as long as we can buy
slabs,” said Brett Guge, the
company’s vice president for
finance and administration.
Another company benefiting from the reprieve is ArcelorMittal SA, the world’s largest steel producer. The
Luxembourg-based company is
a partner in a mill in Calvert,
Ala., that uses imported slabs
from Brazil and Mexico to
make sheet steel for automobiles. ArcelorMittal declined to
comment.
The European Union, Brazil,
Mexico, Argentina, Australia,
Canada and South Korea were
the major steel-producing nations that won exemptions
Thursday from what the Trump
administration described earlier in the month as a world-
wide 25% levy. Some slab-exporting countries, most notably
Russia and Japan, weren’t
granted exemptions, which are
set to last until at least May 1.
NLMK USA, the steel-rolling
unit of Russian steelmaker
NLMK Group, buys almost all
of its steel from its parent
company. The 25% tariff will
add $150 to the $600 cost of a
single slab, said James Banker,
executive vice president of the
U.S. unit. That would add up to
millions of dollars in material
costs for the NLMK mills in
Pennsylvania and Indiana,
which process about 200,000
tons of slabs in a month.
“It’s disruptive,” he said.
“It’s a burden I don’t want to
pass along to our customers.”
Most U.S. steel companies
were enthusiastic supporters of
the new tariff, arguing that a
flood of cheap finished steel
from abroad, often from statesupported foreign companies,
drove down prices and forced
domestic plants to close.
But the companies that rely
on imported semifinished steel
say the material should be
Foreign Metal
U.S. imports of semifinished
steel have rebounded since
the recession.
10 million metric tons
8
6
4
2
0
’08
’10
’12
’14
THE WALL STREET JOURNAL.
treated like feedstock, and not
subject to the same tariffs as
finished products. About 13%
of the flat-rolled steel made in
the U.S. is converted from imported slabs, according to industry estimates.
Mr. Banker said rolling companies like NLMK USA would
still need to import slabs to
meet their needs even if all
idle U.S. steelmaking capacity
is restarted.
AkzoUnitFetches$12.6Billion
BY BEN DUMMETT
A consortium led by privateequity giant Carlyle Group LP
agreed Tuesday to buy the specialty chemicals business of
Dutch paints giant Akzo Nobel NV for €10.1 billion ($12.6
billion) including debt, as competition among cash-rich
buyout firms for bigger deals
heats up.
Akzo’s chemicals are used in
a wide range of products, from
plastic bags to solar panels. The sale fits into the Amsterdam-based manufacturer’s
plan to boost its share price after fending off a $27.6 billion
takeover bid last year from U.S.
rival PPG Industries Inc.—a
stance that irked Elliott Management Corp., the U.S. activist hedge fund, and other
shareholders.
The chemicals deal “is a key
milestone…to generate value
for all stakeholders,” Thierry
Vanlancker, Akzo’s chief executive, said in a statement.
U.S.-based Carlyle and partner GIC Pte. Ltd., Singapore’s
sovereign-wealth fund, gain a
business enjoying increased
demand, particularly in Europe, amid improving economic
conditions. In 2017, revenue for
Akzo’s chemicals business rose
4% to almost €5 billion, while
operating income gained 10%
to €689 million.
The sector’s momentum
fueled competition for the
Akzo business. Carlyle beat out
private-equity firms Apollo
Global Management and an alliance of Bain Capital Private
Equity and Advent International Corp.
Global private-equity firms
are under increasing pressure
to do larger deals after they
raised a record $453 billion in
2017, leaving them with more
than $1 trillion to invest, according to data provider
Preqin.
Carlyle and partner
GIC add specialty
chemicals assets
amid rising demand.
In December, KKR & Co. won
out over Apollo and CVC Capital Partners for the margarineand-spreads business of Unilever PLC in a €6.8 billion deal.
In January, a Blackstone
Group LP-led consortium
struck a deal to buy a controlling stake in the financial-information business of Thomson
Reuters Corp. for $17 billion.
However, bigger deals also
come with greater risk, as
demonstrated by the recent
bankruptcies of Toys “R” Us
Inc. and iHeart Media Inc.
“Were the industry to perform due diligence on itself,
these trends would raise a red
flag,” management-consulting
firm Bain & Co. said in a private-equity report referencing
the pressure to complete bigger transactions. The firm is
separate from Bain Capital.
Still, Carlyle has experience
investing in the chemicals sector. In 2016, the firm struck a
$3.2 billion deal to acquire
Atotech Solutions, a supplier
of plating chemicals used in
circuit boards and semiconductor manufacturing from French
energy giant Total SA.
Akzo, which traces its roots
in part back to dynamite inventor Alfred Nobel, said it would
generate proceeds of about
€7.5 billion from the sale and
expects to distribute the bulk
of that to shareholders as part
of the company’s previously
stated plan. The deal is also
meant to make it easier for investors to value Akzo by simplifying its corporate structure
with a focus only on paints and
coatings.
The
paints-and-coatings
business faces a challenging
environment amid higher raw
materials costs and foreign-exchange volatility. In 2017,
Akzo’s paints and coatings division increased its revenue by
2% to €9.61 billion, but operating income fell about 11% to
€825 million.
Noisy attacks aren’t
hard to find…
But could you catch the silent attacker lurking
beneath the surface?
Using artificial intelligence, Darktrace finds the quiet cyberthreats inside your organization, no matter how they got in.
From stealthy attackers and insider threats, to hacks of
connected objects or industrial networks, Darktrace detects
it and fights back in real time.
HENDRIK SCHMIDT/DPA/ZUMA PRESS
Find out how at darktrace.com
The sale fits into Akzo Nobel’s effort to boost its share price. An Akzo chemical plant in Germany.
’16
Source: International Steel Statistics
Bureau/World Steel Dynamics
World-Leading Cyber AI
.
B4 | Wednesday, March 28, 2018
* ***
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Self-Drive ‘Honeymoon’ Cut Short Waymo
Purchases
BY TIM HIGGINS
Nvidia Suspends
Driverless Testing
NATALIE BEHRING/REUTERS
TEMPE, Ariz.—When selfdriving test cars from Uber
Technologies Inc. started
showing up on the streets here
early last year, many in the
community greeted them with
fascination and a certain
pride.
Residents posted photos on
social media of themselves
spotting the vehicles in public,
and many say they felt the
testing showed that the Phoenix suburb was embracing innovation.
After the fatal crash a week
ago in which an Uber test car
in autonomous mode struck
and killed a pedestrian, community leaders are grappling
with tough questions about
technology that many still see
as exciting and promising, but
also potentially dangerous.
Late Monday, Gov. Doug
Ducey barred Uber from further autonomous-vehicle testing in Arizona indefinitely
while authorities investigate
the crash, which he called “an
unquestionable failure to comply” with the expectation that
companies make safety a priority.
In California, meanwhile,
Uber said Tuesday that it
doesn’t plan to renew its permit to test autonomous vehicles in the state. Uber will let
its California testing permit
lapse at month’s end, rather
than resubmit it for renewal.
For Tempe, “the honey-
Jaguar
Vehicles
Nvidia Corp., which has
made a broad push to bring its
computing platform into selfdriving cars, said Tuesday it
will suspend testing of its driverless technology on public
roads following the fatal crash
of an Uber Technologies Inc.
autonomous vehicle.
The company said the suspension involves its own fleet
of test cars, which are being
driven on public roads in California and New Jersey.
Uber has also used Nvidia’s
computing technology in its
Volvo XC90 SUVs, the same
type of vehicle that struck a
pedestrian on March 18 in
Tempe, Ariz. The two companies in January officially announced that Uber selected
Nvidia’s artificial-intelligence
computing system for its fleet
of self-driving cars and freight
trucks. Nvidia’s chips and software help robot cars instantly
crunch the vast amounts of
data from sensors and cameras to make split-second decisions.
It isn’t clear if Nvidia’s technology was in the car involved
in the Arizona accident.
“Most self-driving vehicle
prototypes and test vehicles
use Nvidia technology,” an
Nvidia spokesman said in a
statement. “In some case, customers are developing their
own software and we don’t
have details of their algorithms.”
The spokesman said Nvidia
is seeking to find out more details on Uber’s configuration
and software.
An Uber spokeswoman declined to comment on the matter.
—Ted Greenwald
tential way to make roads
safer, and believed that tech
companies would bring investment and jobs to the state.
Still, city officials say they
played little role in the arrival
of Uber’s testing program.
Uber’s self-driving test fleet
arrived in Tempe in early 2017.
“It came to us—we didn’t
go out and seek it,” Mayor
Mark Mitchell said in an interview last week. “They just
showed up.”
In a statement Monday
night, Mr. Mitchell said he
supported Gov. Ducey “exercising his authority and taking
action to regulate autonomous-vehicle testing.” He emphasized that safety is imperative, adding: “We must know
what led to this tragedy and
I’m hopeful that working with
federal partners will help to
bring about answers.”
—Greg Bensinger
contributed to this article.
BY TIM HIGGINS
AND CHESTER DAWSON
Arizonans are rethinking Uber’s self-drive tests after a fatal crash.
moon may be over” for autonomous cars, said Thad Miller,
assistant professor at Arizona
State University’s School for
the Future of Innovation in
Society in downtown Tempe.
Mr. Miller, who has consulted
with city officials on the policy implications of having autonomous vehicles, expects
more
discussion
about
whether the test vehicles
should be allowed to operate
around schools or at night.
More than 600 autonomous
vehicles were being tested on
Arizona roads before Uber’s
crash, according to the state.
Uber, which has suspended its
tests in all cities since the incident, focused its efforts
around this college town,
while rival Waymo, the selfdriving unit of Google parent
Alphabet Inc., is centered in
nearby Chandler.
Some in Tempe viewed autonomous technology as a po-
Ryder Creates Online Marketplace for Truck Leasing
BY AUSTEN HUFFORD
Ryder System Inc. is developing an Airbnb-like marketplace for transportation assets
that puts idle commercial vehicles in the hands of users looking to affordably expand capacity.
Ryder, which provides
short-term truck rentals and
fleet-management services for
companies, said Tuesday that
during the workweek about
25% of U.S. commercial vehicles typically sit unused for
more than a day.
The company’s new service,
dubbed COOP, was launched in
January in the Atlanta metro
area. Ryder said it plans to
fully expand the service in the
Atlanta area next month and
into several other major markets next year.
“Seasonal and cyclical truck
shortages, coupled with fleets’
excess and unused capacity,
demonstrates the benefit of
having a technology like COOP
Foxconn Unit Agrees to Buy Belkin for $866 Million
available in the marketplace.”
Ryder Chief Executive Robert
Sanchez said.
COOP is currently a mobileoptimized website, and Ryder
said it expects to roll out a mobile app in the fourth quarter.
Over the past decade, “sharing economy” companies, such
as room- and house-rental ser-
NTSB Sends a Team
To Examine Tesla Crash
PAUL BUCK/EPA/SHUTTERSTOCK
BY MIKE SPECTOR
A unit of Foxconn Technology Group has agreed to acquire smartphone and electronics accessories maker Belkin
International Inc. for $866 million.
The move disclosed Tuesday
comes as Taiwan-based Foxconn,
known as the contract assembler of Apple Inc.’s iPhones,
seeks to bolster its consumerbranded operations.
Privately held Belkin also
owns Linksys, a wireless router
brand, and the Wemo brand of
products that control home
lights, monitor cameras and similar devices.
The Los Angeles-based company, which also makes cables,
is a “world-recognized brand”
with strong sales channels, Foxconn unit FIT Hon Teng Ltd.
said in a filing on the Hong Kong
stock exchange.
FIT, which also makes cables
and connectors, said the purchase should help it develop its
smart-home business.
—Yoko Kubota
vice Airbnb Inc., and ride-sharing service Uber Technologies
Inc., have disrupted many industries.
Ryder will have to figure
out how to serve customers of
its new rental marketplace
without driving down prices in
its actively managed fleet
business.
The National Transportation Safety Board has dispatched investigators to examine a fatal crash last week in
California of a Tesla Inc. electric vehicle and determine
whether its semi-automated
driving system was engaged.
The NTSB said Tuesday it
was conducting a “field investigation” of the Friday crash
near Mountain View, Calif.,
that resulted in the vehicle
later catching fire.
“Unclear if automated control system was active at time
of crash,” the NTSB said in a
social-media posting, in a reference to Tesla’s Autopilot
feature. “Issues examined include: post-crash fire, steps to
make vehicle safe for removal
from scene.”
A man died in the accident
after his Tesla Model X sportutility vehicle hit a barrier and
was struck by two other vehicles, according to the California Highway Patrol.
Tesla’s stock plunged more
than 8% in Tuesday trading.
“We have been deeply saddened by this accident, and we
have offered our full cooperation to the authorities as we
work to establish the facts of
the incident,” Tesla said in a
statement.
Later Tuesday, Tesla said in
a blog post on its website it
hadn’t yet been able to retrieve the vehicle’s computer
logs to understand what happened. It said the reason the
crash was so severe is that the
highway safety barrier designed to reduce impact had
either been removed or previously crushed. “We have never
seen this level of damage to a
Model X in any other crash.”
The NTSB stressed that the
status of the Autopilot system
at the time of the crash wasn’t
the main focus of its probe.
—Tim Higgins
contributed to this article.
Tesla’s stock slides amid
crash investigation............... B12
As Uber Technologies
Inc. reels from a fatal crash involving one of its autonomous
vehicles, rival Waymo is moving ahead, buying as many as
20,000 Jaguar vehicles for its
robot fleet.
The deal, announced Tuesday, is potentially worth more
than $1 billion, and escalates
Waymo’s effort to put vehicles
on public roads without human drivers behind the
wheel. The vote of confidence
comes a day after Arizona’s
governor suspended Uber
from testing in the state following the first pedestrian
death involving a self-driving
vehicle.
The
governor’s
order
doesn’t extend to other companies including Waymo. The
self-driving car unit of Google
parent Alphabet Inc. has been
conducting tests since 2016 in
the Phoenix metro area and
has announced plans to begin
a commercial robot taxi service there later this year.
Waymo will add its driverless technology to the new
Jaguar I-Pace all-electric
sport-utility vehicle and it
said it would begin testing
this year before deploying
the SUVs in 2020.
The companies said as
many as 20,000 of the SUVs
will be built in the first two
years, and more vehicles
could be purchased after
that.
Uber, which has been racing
to catch up with Waymo,
paused its testing last week in
four cities after one of
its Volvo SUV test vehicles struck a pedestrian walking her bike across a road
in Tempe, Ariz. Investigators
are reviewing the case; some
autonomous-car specialists
say the vehicle’s sensors
should have detected the
woman.
The crash stirred lawmakers to call for regulating autonomous-vehicle
development, and at least one car
maker, Toyota Motor Corp.,
decided to temporarily halt
public testing of its self-driving vehicles.
On Monday, Arizona Gov.
Doug Ducey, who has been
welcoming of driverless technology in the state, sent a letter to Uber’s CEO saying he
would suspend the company’s
testing after “an unquestionable failure” to comply with
expectations of public safety.
Uber said it would help the investigators and address any
concerns with the governor’s
office.
Waymo’s chief executive,
John Krafcik, has expressed
confidence in the aftermath
of the crash, telling car dealers at a convention in Las
Vegas on Saturday his company’s technology would
have avoided hitting the pedestrian.
Uber, in response to those
remarks, said “safety is our
primary concern every step of
the way.”
THE MOMENT YOU HELP US
REACH THEM IN TIME
MALAWI 2015 © Luca Sola
Make this your moment.
DoctorsWithoutBorders.org/Donate
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | B5
TECHNOLOGY
PERSONAL TECHNOLOGY | By David Pierce
Short-Listing Laptops in a Welter of Choices
You still
need a laptop.
You can try to
work from
your phone—
best of luck—
and technically an iPad does
a lot of laptop-y things. But
when there’s work to be
done, nothing beats that
combination of keyboard,
trackpad, larger screen and
desktop apps.
Buying a laptop is a little
harder than buying a phone.
Companies sell so many
models and so many options,
it feels like you need a Ph.D.
to tell them apart. If you
pick wrong, though, you’re
likely stuck: Intel says most
people upgrade only every
five or six years.
Let’s simplify things by
looking at the $1,000 mark.
Spend less and you tend to
sacrifice important specs or
features. Spend more and
you’re buying diminishing
returns: slightly thinner,
minimally faster. Unless you
want to pay for gaming
power or an Apple logo, a
grand buys all the Windows
laptop you need.
After lots of research and
testing, I found five laptops
you should consider. You can
find each one for between
$900 and $1,100, though remember: Windows laptops
can have volatile pricing, so
always look for sales. I’ve
highlighted a standout feature
for each of my picks, and
named an overall winner.
The pretty one
In most ways, Dell’s XPS
13 is every bit as good as any
of its competitors. In one
way it’s the best: By nearly
eliminating the bezel around
the display, Dell squeezed the
XPS 13 into a smaller body
than any of its competitors.
The XPS 13 scored the second-best time in my battery
tests, it has all the right
chips and features, and it
looks like it cost good money.
But…that tiny bezel forced
Dell to move the webcam
down below the screen.
Rather than framing my face,
the camera stares up my
nose. (Dell says most users
don’t mind the placement.)
The bigger problem is that
the XPS 13 you want costs
$1,200. The standard model
comes with a paltry four
gigs of RAM and 128 gigs of
storage—neither of which
will suffice.
The affordable one
Fab Five
Choosing a laptop means weighing your priorities. Here are our five favorite $1,000 Windows
laptops as measured in four key areas.
NAME
PRICE
SCORE
PROS
CONS
Microsoft
Surface Pro
$958
Battery
Looks
Power
Versatility
Light, thin and
versatile; most
tablet-like of the
bunch
Hard to use
on your lap;
low-end
processor
Dell
XPS 13
$999
Battery
Looks
Power
Versatility
Big screen in a
small body;
attractive design
Ridiculous
webcam
placement;
chintzy keyboard
HP
Spectre x360
$999
Battery
Looks
Power
Versatility
Clean,
attractive look;
excellent
keyboard
Gets dirty easily;
uneven
keyboard
backlight
Lenovo
Yoga 720
$989
Battery
Looks
Power
Versatility
Light and
flexible; often
cheapest of the
bunch
Shallow
keyboard;
subpar speakers
Acer
Swift 3
$999
Battery
Looks
Power
Versatility
Lots of ports;
big screen and
roomy
keyboard
Big and heavy;
more desktop
than laptop
The portable one
Source: the companies (photos); WSJ analysis of the laptops
No Windows computer
combines portability and
functionality quite like Microsoft’s Surface Pro. It’s the size
and shape of an iPad, with
the full power of Windows.
Unfortunately, all that versatility compromises the
Surface Pro’s utility, and I
don’t just mean the smaller
screen. And, because the
crucial keyboard accessory
sells separately for $160, it’s
deceptively expensive. (I’ve
included it in my pricing, because you need it.) The only
way to hit the $1,000 target
and still get the whole kit is
to buy the cheapest model,
which uses a vastly underpowered processor.
The powerful one
Many laptops in this price
range offer enough processing oomph for web browsing,
Netflixing and Exceling, but
not gamer-grade horsepower. Acer’s Swift 3 does a
little better. Its Core i7 processor, more powerful than
you’ll often find at this price,
THE WALL STREET JOURNAL.
makes the machine more
suitable for Photoshop users
or inveterate tab-hoarders.
Acer also added a large selection of ports to the Swift 3
and a relatively large 14-inch
display. But all that extra
stuff makes it larger and
heavier than my other picks.
It isn’t especially mobile.
Lenovo’s Yoga 720 has almost everything you’d want
in a laptop, and I’ve seen it
on sale for as little as $750.
Its screen backflips to lie flat
against the keyboard so you
can hold it like a tablet. It’s
fast enough, lasts long
enough and looks good
enough.
My issues with the Yoga
individually feel minor: The
speakers sound mushy, the
keyboard is a bit shallow, the
design is bland. Together,
they make clear why the 720
is cheaper than the others.
The best one
The best $1,000 Windows
computer is HP’s latest Spectre x360, a machine that
does everything well.
The x360 checks all the
spec boxes, looks as good as
anything out of Cupertino,
Calif., and is enjoyable to use,
from the speakers to the keyboard. It has a 360-degree
hinge that flips the laptop
into a tablet. It uses new
USB-C ports for charging and
data, but also offers an olderstyle standard USB-A port.
In my testing, the x360’s
biggest problem has been the
lid’s tendency to scuff in my
bag. It came in third on my
super-harsh battery test, behind the Surface Pro and
nearly in line with the Dell:
You should have no trouble
using it through a workday.
Apple Updates Entry-Level iPad to Get to the Head of the Class
BY TRIPP MICKLE
Apple Inc. said it is updating its entry-level iPad with
capabilities designed to appeal
to students and new software
for teachers, as the company
tries to recharge sales of the
tablet and shore up its dwindling share of the U.S. education market.
The company on Tuesday
said its new 9.7-inch iPad includes a faster processor and
works with the Apple Pencil stylus, which had worked only with
higher-end iPad Pro models.
The entry-level iPad’s price
remains at $329, the lowestpriced tablet available from
the company. Schools can buy
the device for $299.
The announcement, made at
Lane Tech College Prep High
School in Chicago, was coupled
with software and support capabilities aimed at schools.
The kindergarten-through12 market represents a critical
opportunity for tech companies to get young people accustomed to their operating
systems. Introducing students
to those systems could help
sway future purchasing decisions that span the rest of
their lives, said Scott Galloway, a marketing professor at
New York University.
Technology companies have
pushed computers in the classroom since at least the 1970s,
and Apple took an early lead.
But the company’s dominance faded in the face of
cheaper laptops such as
Google Chromebooks from Alphabet Inc. or Windows-pow-
ered devices from Microsoft
Corp. While many of those devices cost less than $300, Apple’s MacBook starts at $999.
Apple’s lowest-priced iPad
offers the company its best
chance to compete in the costconscious education market.
The update to the entry
level iPad is unlikely to reverse Apple’s slump in education sales, analysts say. Over
the past five years, Apple’s
share of computing shipments
in the $18 billion U.S. education hardware market has
fallen to 19% from 50%, according to Futuresource Consulting. Alphabet now has a
59% share, compared with Microsoft’s 22%.
Heard on the Street: Apple
trails Google in school........ B14
WSJ TALK / E XPERIENCE / OFFER / GE TAWAY
Unwind and
Recharge
With
Wanderlust
Escape the ordinary by joining world-renowned yoga teachers,
artists and mentors for a transformational experience at an aweinspiring mountain resort. WSJ members enjoy an exclusive 20%
off festival passes.
EXCLUSIVE TO WSJ MEMBERS
BOOK NOW AT WSJPLUS.COM/WANDERLUST
© 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6424
.
THE WALL STREET JOURNAL.
B6 | Wednesday, March 28, 2018
THE PROPERTY REPORT
Property funds look to
consolidate as some
big investors pull back
on use of such firms
BY PETER GRANT
Since last fall, Patrizia Immobilien AG, a European realestate fund manager, has acquired three other firms, more
than doubling its assets under
management to about €40 billion ($50 billion) from €18.6
billion one year ago.
“It’s been quite an active
year,” said Anne Kavanagh,
who joined the Ausburg, Germany-based firm last year as
chief investment officer and
who cautioned it would be fair
to describe her remark as a
typically “understated English
comment.”
Patrizia isn’t the only one
that has been busy. A mergers
and acquisitions frenzy has
erupted in the real-estate
fund-management business as
firms consolidate, seek out
new sources of capital, stake
out new markets and gird
themselves for changes in the
long-running bull market.
Deals are taking different
forms in response to a range
of strategies among buyers
and sellers. Some involve
mergers of real-estate specialists, like Patrizia’s absorption
of Rockspring Property Investment Managers of London;
Sparinvest Property Investors
of Copenhagen; and Triuva, of
Frankfurt.
Other deals are combinations of managers that invest
in real estate and other assets,
as with last year’s £11.3 billion
($16 billion) merger that created Edinburgh-based Standard Life Aberdeen PLC.
Still, others involve firms’
minority and passive stakes in
managers, such as a Blackstone Group LP fund’s purchase this month of a roughly
20% stake in Rockpoint
Group.
A market for minority
stakes is increasing partly because it helps firm principals—by clarifying the firm’s
current value—develop succession plans “with minimal turbulence,” said Michael Stark,
co-head of Park Hill Real Estate Group, a global advisory
firm and placement agent. Minority stakeholders also can
provide capital for expansion,
he said.
“That trend is extremely
prevalent right now,” Mr.
Stark said.
Roots of today’s shakeout
go back in part to the 2008 financial crisis when many managers suffered steep losses,
which prompted an exodus
from commercial real estate
by many of their investors.
Some major players disappeared or greatly scaled back
their businesses.
Only three of the top 10
managers in 2009, in terms of
assets under management,
make the top 10 list today, according to a ranking by IPE
Real Assets, a trade publication. Two of the top 10 firms
today are merged managers
consisting of one of the top 10
in 2009.
Now, a decade after the
crash, merger and acquisition
activity is intensifying but for
different reasons. Commercial
real estate is back in favor
among many institutional investors, but many continue to
use fewer managers than a decade ago. That puts pressure
on firms to consolidate.
The California Public Employees’ Retirement System in
2015 reduced the number of
direct relationships it had
with private-equity, real-estate
and other external funds to
about 100 from 212. Officials
said at the time that the pullback would take place over the
next five years.
Institutional investors feel
that using fewer managers is
more efficient and gives them
more clout over fees. “They
can bring the weight of their
ALEX KRAUS/BLOOMBERG NEWS
Money Managers Feel the Urge to Merge
Patrizia Immobilien last year acquired the Commerzbank Tower in Frankfurt on behalf of a client.
Slowdown
The global number of real-estate funds that completed fundraising and the amounts have declined recently.
Number of funds
Capital raised by real-estate private-equity funds
400
$160 billion
300
120
200
80
100
40
0
2003
0
’10
Source: FactSet
2003
Note: Figures for 2018 are as of March 22.
capital to bear in a more focused way,” said Jay Long, a
principal of Townsend Group,
a Cleveland-based real-estate
manager and adviser.
London-based Aon PLC acquired Townsend this year for
$475 million. Aon plans to
keep Townsend operating independently under its current
name and management team.
Consolidations and other
changes in the business are reflected by a decline in fundraising. Last year, private-equity firms completed raising
money for 293 real-estate
funds for a total of $123.8 billion, down from 338 funds and
$127.7 billion in 2016. The
peak was 2008, when 371
funds raised $145.1 billion.
’10
THE WALL STREET JOURNAL.
The biggest firms in the
business dwarf small and midsize firms. Blackstone had $115
billion in real-estate assets under management at the end of
2017, up from $57 billion five
years earlier. The passive
stake in Rockpoint wouldn’t
add to that amount because it
was purchased by a fund that
takes minority stakes in asset
Mall Landlords Take Hit in Wake of GGP Deal
Shares of retail real-estate companies declined over
concerns that the weak acquisition price for GGP Inc. reflects problems with brickand-mortar
stores
are
beginning to drag down values
of top-tier malls.
Shares of Chicago-based
GGP dropped 5.3% on Tuesday,
Macerich Co. fell 4.1%, Taubman Centers Inc. shed 2.5%
and Simon Property Group
Inc. slid 1.9%. The S&P 500
was off 1.7%.
Brookfield Property Partners LP said late Monday that
a special committee of the
board at GGP agreed to its offer to buy the 66% stake in the
company it doesn’t already
own. The price—$23.50 a
share in cash or stock—was a
sweetened version of the offer
that Brookfield made in November.
But it was below the $24
price many investors and analysts felt the company would
fetch. Some predicted that
GGP shareholders would reject
it when the special committee’s recommendation is put
TASOS KATOPODIS/GETTY IMAGES
BY ESTHER FUNG
Analysts say the low price signals concern over top-tier malls.
up for a vote this year.
In a research report Tuesday, analysts at BTIG pointed
out that Brookfield’s “wholly
inadequate” offer values GGP
at a 21.9% discount to what
the company would be valued
at if its properties were sold
separately. “Why should the
shareholders gift that arbitrage to Brookfield and award
a very valuable management
fee stream to Brookfield Asset Management shareholders
in the process?” the report
said.
But others noted that at
this juncture, the shareholders
of the REIT have little choice
because there are no other
bids.
“There are people who are
upset and want to vote no,”
said Alexander Goldfarb, man-
aging director at Sandler
O’Neill + Partners. “While the
transaction price undervalues
GGP, we believe GGP shareholders are left with the unpleasant situation of either declining in hopes of a higher
price or just accepting reality
and moving on.”
The low bid comes at a
time that competition from
online shopping is clobbering
bricks-and-mortar stores. In
recent weeks, Toys “R” Us Inc.
said it is starting to wind
down its U.S. business and liquidate inventory in all 735 of
its U.S. stores. The Wayne,
N.J.-based company filed for
bankruptcy protection in September.
Last week, teen-accessories
chain Claire’s Stores Inc. filed
for chapter 11 bankruptcy protection.
GGP’s portfolio of 125 properties includes some of the top
malls in the country, such as
Ala Moana Center in Honolulu.
Top-quality malls located in
wealthier areas have high
rents and occupancy rates and
are believed to be more immune to the turmoil in the retail world.
Another sign of Brookfield’s
low bid is its capitalization, or
cap, rate, a common measurement in the real-estate industry of annual income from a
property compared with its
original cost. Lower cap rates
mean higher prices.
Analysts say Brookfield’s
price amounts to a 6.0% cap
rate. In 2016, GGP sold a 50%
stake in Fashion Show Mall in
Las Vegas to TIAA Global Asset Management at a price
that valued the mall at a cap
rate of 3.9%.
In December, European
shopping center company Unibail-Rodamco SE made a $15.7
billion takeover offer for Westfield Corp., which has a
smaller portfolio of high-end
malls in the U.S. compared
with GGP. Analysts said the offer placed Westfield at a cap
rate of about 4% to 5%. Since
then, mergers and acquisitions
for upscale malls have slowed.
GGP was forced into bankruptcy protection in 2009 but
recovered after emerging from
chapter 11 in 2010.
Its portfolio includes more
second-tier malls than some of
its peers.
REITs Put Up the ‘for Sale’ Sign to Raise Cash
BY ESTHER FUNG
More real-estate assets
owned by publicly listed REITs
are up for sale as the gap widens between their discounted
share prices and the value of
private-market transactions of
physical assets.
Shares of real-estate investment trusts have underperformed the broader stock market for the third year running,
in part because of rising interest rates, which cause these
dividend-paying stocks to lose
some of their appeal. The total
return of the FTSE Nareit All
Equity REITs index has declined 8.8% this year, compared with a 1.8% drop in the
S&P 500’s total return.
Because it would be difficult to issue new shares if
REITs continue to trade at discounts, some are now compelled to sell assets to raise
cash to help them reposition
their remaining assets or fund
share buybacks.
REITs could sell individual
assets, sell stakes in assets to
other institutional investors
and enter joint ventures in
which they also could earn
some management fees, or be
acquired entirely and privatized by an investor.
Industry insiders said that
while there are more for-sale
signs popping up, these sales
aren’t driven by the need to
reduce debt because REITs
have been more disciplined
since the financial crisis, so
property prices aren’t likely to
fall drastically.
Listed REITs have been net
sellers of assets since 2015, according to data from Real
Capital Analytics. From January to March 23 of 2018, there
were $6.91 billion in disposals,
compared with $5.38 billion in
acquisitions.
Disposals topped acquisitions in 2017 and 2016, $60.9
billion to $56.1 billion and
$71.4 billion to $48.4 billion,
respectively, Real Capital said.
“There hasn’t been any reprieve in the valuation of
REITs,” said Gil Menna, a partner at law firm Goodwin
Procter LLP. Asset sales and
joint ventures with pension
Some need to sell
assets to fund share
buybacks or reposition
remaining holdings.
plans, private-equity firms and
other institutional investors
that have occurred in recent
years “should be happening in
a bigger way this year,” he
said.
This month Santa Monica,
Calif.-based Macerich Co. sold
a portion of Westside Pavilion
by forming a 25%-75% joint
venture with Hudson Pacific
Properties to redevelop the
Los Angeles shopping mall
into office space.
Phoenix-based REIT Vereit
Inc., formerly known as American Realty Capital Properties
Inc., has unloaded real-estate
assets valued at $3.2 billion
from 2015 to 2017. In February,
Vereit closed the sale of Cole
Capital, its investment-management business, to Los Angeles-based real-estate investment firm CIM Group.
Vereit, which underwent a
rebranding and replaced its
board members and management team after an accounting
scandal in 2014, plans to sell
another $300 million to $500
million in assets this year to
continue efforts to diversify
its portfolio.
“If you have to sell today,
instead of 10 bidders you get
five,” said Glenn Rufrano, Vereit’s chief executive officer,
noting that while there is
more competition from other
sellers in the office market,
the REIT had started selling
earlier and isn’t under pressure to sell cheaply. “At this
point, we’re at a bit of an advantage,” Mr. Rufrano said.
Cleveland-based
Forest
City Realty Trust in recent
months has sold shopping centers to Australian institutional-investment firm QIC
and some New York retail assets to Madison International
Realty LLC.
Forest City has been undergoing a strategic review for
the past six months with an
eye toward possibly selling itself completely. The REIT said
last week that its financial advisers had narrowed the bidding process to one buyer, but
both parties couldn't agree on
the terms of a sale. Forest
City said that rather than a
sale, nine of its board members would resign to make
room for new faces.
managers, not Blackstone’s
real-estate fund business.
Pressures from investors on
fund managers to become
more efficient are especially
keen now because the bull
market in commercial real estate is in its ninth year. With
prices at high levels and yields
low, “it becomes even more
important to save on costs,”
said Mathieu Elshout, of
PGGM, a Dutch pension-fund
service provider.
Patrizia’s acquisitions have
made the firm more competitive by enabling it to offer investors a fuller menu of fund
strategies and by allowing it
to spend more on technology
and on the cost of complying
with increasing regulatory requirements, Ms. Kavanagh
said. “We’re in a low return
environment,” she said. “Every
euro counts.” Patrizia’s realestate deals include its acquisition last year of the Commerzbank Tower in Frankfurt,
Germany’s tallest building, on
behalf of a client.
But some firms are eyeing
consolidations taking place at
competitors as an opportunity
to pick up business, especially
when the mergers don’t go
smoothly. “I can’t imagine that
100% of the clients are jumping for joy,” said Simon Marrison, chief executive of Europe
for LaSalle Investment Management.
At the same time, some
have questioned whether bigger is always better. Investment firms typically are compensated partly on the basis of
assets under management and
partly on the basis of how well
those assets perform, said
Meagan Nichols, of investment
firm Cambridge Associates,
which provides services including advising investors
which managers to select.
“As you aggregate together
more and more assets, the
management fees get bigger
and bigger,” she said. “It’s a
recurring revenue stream regardless of performance.”
PLOTS
& PLOYS
LENNAR
Builder Taps Tech
For Mortgages
Lennar Corp. is trying to
make the mortgage-application
process a bit easier in hopes of
easing the way to homeownership for younger buyers.
Lennar plans to begin using
mortgage-application technology
from Blend, a San Franciscobased startup, that allows consumers to apply for a mortgage
online or on their phone. Executives say the technology can
shave as many as 10 days off
the process of applying for a
mortgage.
Like many big home builders,
Lennar has a mortgage subsidiary that helps buyers of its
homes and others get mortgages. Making it easier for those
buyers to get mortgages could
help Lennar with attracting millennials. An additional obstacle
for younger home buyers is the
process of applying for a mortgage. “It’s an incredible challenge
for a first-time buyer because
you’re pulling documents from
many different sources and it
hasn’t been a very friendly process,” said Bruce Gross, Lennar’s
chief financial officer.
—Laura Kusisto
APARTMENTS
Rental Sector Shows
Signs of Cooling
The apartment-rental market
softened in the first quarter, but
not as much as expected given
a surge in new supply.
The apartment vacancy rate
edged up to 4.7% in the first
quarter, from 4.6% in the fourth
quarter of 2017 and 4.3% a year
ago, according to data released
by Reis Inc. on Tuesday. The average apartment rent rose 3.9%,
Reis said.
By both measures, the market has cooled from the recent
peak, when rent growth hit 5.8%
in 2015 and the vacancy rate
touched a low of 4.1% in the
third quarter of 2016.
Still, the market has proved
to be resilient, given a flood of
new supply from developers
hoping to cash in from the
strong growth rate earlier in the
recovery.
—Laura Kusisto
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | B7
NEW HIGHS AND LOWS
BANKRATE.COM® MMA, Savings and CDs
Average Yields of Major Banks
Tuesday, March 27, 2018
MMA
1-MO
2-MO
3-MO
6-MO
1-YR
2-YR
2.5YR
5YR
Savings
Jumbos
0.14
0.28
0.07
0.07
0.07
0.07
0.15
0.17
0.23
0.25
0.41
0.44
0.58
0.63
0.55
0.67
1.06
1.13
Savings
Jumbos
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.02
-0.02
-0.01
-0.01
Type
National average
Weekly change
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE American
and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest
session. % CHG-Daily percentage change from the previous trading session.
Tuesday, March 27, 2018
52-Wk %
Sym Hi/Lo Chg Stock
Stock
Consumer Savings Rates
Highs
Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
not an indication of financial strength or weakness. Information is believed to be reliable, but not
guaranteed.
High yield savings
Bank/rank
Phone number
Minimum
Yield
(%)
Money market and savings account
DollarSavingsDirect /4
(866) 395-8693
CIT Bank /5
(855) 462-2652
Northern Bank Direct /4
(844) 348-8996
$1
1.80
$100
1.75
$5,000
1.51
EH National Bank /5
$0
(888) 392-5265
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
VirtualBank /4
$10,000
(877) 998-2265
0.82
One-month CD
Two-month CD
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Three-month CD
0.30
0.15
$10,000
0.15
$1,000
0.05
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
Ally Bank /5
$25,000
(877) 247-2559
TAB Bank /5
$1,000
(800) 837-4136
1.56
1.50
1.46
Bank/rank
Phone number
Minimum
Six-month CD
TAB Bank /5
$1,000
(800) 837-4136
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
Ally Bank /5
$25,000
(877) 247-2559
One-year CD
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
Colorado Federal Savings Bank /4 $5,000
(877) 484-2372
Two-year CD
Colorado Federal Savings Bank /4 $5,000
(877) 484-2372
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
MyeBanc,ADivisionofBACFloridaBank/4 $5,000
(855) 512-0989
Five-year CD
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
Goldman Sachs Bank USA /5
$500
(855) 730-7283
Yield
(%)
1.82
1.76
1.75
2.17
2.12
2.11
2.51
2.43
2.40
2.80
2.78
2.75
High yield jumbos - Minimum is $100,000
Money market and savings account
BBVA Compass /3
(800) COMPASS
Discover Bank /5
(877) 505-4051
M.Y. Safra Bank, FSB /NR
(212) 652-7200
One-month CD
EH National Bank /5
(888) 392-5265
M.Y. Safra Bank, FSB /NR
(212) 652-7200
USAA /NR
(800) 583-8295
Two-month CD
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Citizens Trust Bank /4
(404) 659-5959
Three-month CD
Luana Savings Bank /5
(800) 666-2012
First Internet Bank of Indiana /4
(888) 873-3424
EverBank /4
(855) 228-6755
1.40
1.40
1.26
0.83
0.30
0.22
0.15
0.05
0.01
1.61
1.56
1.25
Six-month CD
Luana Savings Bank /5
(800) 666-2012
First Internet Bank of Indiana /4
(888) 873-3424
Colorado Federal Savings Bank /4
(877) 484-2372
One-year CD
First Internet Bank of Indiana /4
(888) 873-3424
M.Y. Safra Bank, FSB /NR
(212) 652-7200
Colorado Federal Savings Bank /4
(877) 484-2372
Two-year CD
Colorado Federal Savings Bank /4
(877) 484-2372
First Internet Bank of Indiana /4
(888) 873-3424
MyeBanc,ADivisionofBACFloridaBank/4
(855) 512-0989
Five-year CD
M.Y. Safra Bank, FSB /NR
(212) 652-7200
First Internet Bank of Indiana /4
(888) 873-3424
Colorado Federal Savings Bank /4
(877) 484-2372
1.76
AmRltyInv
ArQule
ArrowheadPharm
AstroNova
AxoGen
Azul
BWX Tech
Bio-Techne
CMSevenStarUn
CallawayGolf
ChunghwaTel
ConstellatnAlpha
ConstellAlphaCap
ContinentalRscs
Copart
Crocs
DelekUS
DenburyRscs
DiamondbkEner
Dynegy
EducDev
eGain
EnphaseEnergy
EsteeLauder
Everbridge
Fortinet
GeoPark
GigCapital
GriffinIndlRealty
Guess
HailiangEduc
Harris
Heico
IHSMarkit
InfuSystems
InnovateBio
Insulet
JasonIndustries
Joint
LegacyReserves
ARL
ARQL
ARWR
ALOT
AXGN
AZUL
BWXT
TECH
CMSSU
ELY
CHT
CNAC
CNACU
CLR
CPRT
CROX
DK
DNR
FANG
DYN
EDUC
EGAN
ENPH
EL
EVBG
FTNT
GPRK
GIG.U
GRIF
GES
HLG
HRS
HEI
INFO
INFU
INNT
PODD
JASN
JYNT
LGCY
21.57
3.35
8.09
15.89
40.95
34.84
67.69
149.80
10.24
16.68
38.38
9.95
11.21
59.90
51.77
16.13
41.19
2.89
134.60
13.76
26.05
8.50
5.58
148.92
39.12
55.34
12.75
10.40
37.70
22.15
75.89
164.58
91.34
50.00
2.60
32.99
88.88
3.88
6.30
5.43
-1.9
-2.8
-0.4
-0.3
-1.2
-0.6
-2.7
-1.6
0.2
-0.4
0.3
0.1
0.6
-2.8
-1.8
...
-0.3
-6.4
-3.0
0.5
1.6
-3.6
3.3
-1.0
-4.4
-2.3
-0.4
0.5
0.8
-3.2
10.5
-1.1
-2.8
1.2
7.3
4.5
-0.1
-16.7
0.6
-4.0
Inflation
1.73
248.991
255.783
All items
Core
2.40
2.80
2.78
2.71
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
are based on method of compounding and rate stated for the lowest required opening deposit to
earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
month, three (3) of which may be checks. Rates are subject to change.
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
Internet: www.bankrate.com
0.45
0.45
2.2
1.8
International rates
Latest
2.43
16.30
3.25
159.98
12.30
74.92
2.39
47.10
20.50
9.85
16.32
46.26
9.68
24.14
10.90
31.15
66.70
21.50
164.41
73.02
9.75
25.24
22.34
34.91
39.00
115.48
6.49
48.75
52.86
8.40
150.24
21.56
167.36
51.46
56.69
53.99
28.40
58.20
38.86
1.89
53.57
10.10
17.07
25.97
-0.6
1.6
-2.9
-1.3
-1.1
16.0
-4.8
1.0
-2.4
-1.4
-6.4
...
12.4
3.4
-1.2
-0.8
3.5
0.7
1.6
0.7
-1.7
-2.5
-3.4
-0.4
-5.5
-1.6
-1.7
-1.1
7.8
7.4
8.5
0.9
-0.9
0.8
-1.7
8.0
-2.2
-2.3
2.2
-0.2
0.3
-2.9
...
Twilio
TWLO
2U
TWOU
USBrentOilFd
BNO
US12moOilFd
USL
UsanaHealth
USNA
UtahMedProducts UTMD
VeronaPharma VRNA
VirtuFinancial
VIRT
VitalTherapies
VTL
WillisLease
WLFC
Zendesk
ZEN
42.54
91.00
19.32
22.92
84.45
98.80
25.55
35.20
7.30
32.70
50.15
-7.9
-5.2
-0.7
-0.7
0.9
1.5
-2.0
2.7
3.9
3.1
-3.1
7.51
16.75
19.00
1.29
7.43
15.23
1.75
0.76
0.45
17.58
1.25
9.65
39.41
9.00
24.74
0.60
1.07
25.48
3.55
1.58
10.10
2.90
6.71
1.37
6.82
14.02
42.47
8.66
19.66
4.15
-4.9
-0.1
1.2
-2.3
-1.7
-1.3
-2.6
-15.2
-4.2
-0.4
-17.9
1.0
-1.7
-3.2
0.1
-11.8
-0.9
-0.2
-8.5
-8.6
-2.3
-5.2
-2.7
-2.8
-0.9
-2.3
-2.3
-4.5
-6.8
-1.2
Lows
ADT
ADT
AclarisTherap
ACRS
AcmeUnited
ACU
ADDvantage
AEY
Adecoagro
AGRO
Adtran
ADTN
AegeanMarine
ANW
AirMedia
AMCN
AllianceMMA
AMMA
AlticeUSA
ATUS
Altimmune
ALT
AmerMidstreamPtrs AMID
Amerigas
APU
Ampco-Pitt
AP
ApolloGlPfdB
APOpB
ApricusBiosci
APRI
ArgosTherap
ARGS
AssuredGuarBds AGOpB
AstaFunding
ASFI
AsteriasBiotherap AST
AtlasFinancial
AFH
AutoWeb
AUTO
AvadelPharm
AVDL
AxovantSciences AXON
BRF
BRFS
BasicEnergySvcs BAS
BigLots
BIG
BioXcelTherap
BTAI
Bitauto
BITA
BlueknightEner BKEP
... FTD
BluerockResPfdA BRGpA 24.53
FTD
9.99 -2.1 Finisar
BoardwalkPipe BWP
FNSR
50.29 -2.8 ForesightEnergy FELP
BrighthouseFin BHF
18.13 -1.0 Francesca's
BrookfieldProp
BPY
FRAN
35.24 -1.9 GAMCO Investors GBL
BuckeyePtrs
BPL
11.75
-1.2
CIM Comm
Gafisa
CMCT
GFA
60.14 -1.6 GenesisEnergy
CVS Health
CVS
GEL
22.00 -0.9 Globalstar
CABCO SBC Comm GYC
GSAT
12.25 -1.7 GlobusMaritime GLBS
CapitolFedFin
CFFN
CedarRealtyPfB CDRpB 23.01 -2.3 GreenlightCapRe GLRE
20.45 -1.8 GulfIslandFab
CedarRealtyPfC CDRpC
GIFI
1.30 -4.8 HamiltonBeach HBB
Cel-Sci
CVM
1.97 -10.3 Hasbro
CescaTherap
KOOL
HAS
1.15 -10.7 HeartlandExp
Cherokee
CHKE
HTLD
13.78 -2.3 IDT
ChinaLifeIns
LFC
IDT
4.09 -1.2 Innophos
ChinaXDPlastics CXDC
IPHS
15.64 -3.4 Inovalon
ChipMOSTechs IMOS
INOV
4.30 -7.5 Intellicheck
CidaraTherap
CDTX
IDN
22.78 -1.8 KimcoRealty
CityOfficePfdA CIOpA
KIM
63.90 -0.2 KingswayFin
Coca-Cola Femsa KOF
KFS
2.45 -20.9 Knowles
Cogint
COGT
KN
189.02 -2.1 LG Display
Coherent
COHR
LPL
CompassPfd
CODIpB 23.70 -0.4 Lannett
LCI
19.02 0.7 Libbey
CoreCivic
CXW
LBY
0.18 -5.2 LibertyOilfield
CorMedix
CRMD
LBRT
12.32 -1.0 LifewayFoods
CorpAmAirports CAAP
LWAY
24.55 -0.3 Macom Tech
CorpOfficeProp OFC
MTSI
7.89 -4.8 MIIIAcquisition
Crawford B
CRD.B
MIII
1.31 -3.6 MagellanMid
CyclacelPharm
CYCC
MMP
36.00 0.4 MarinSoftware MRIN
DISH Network
DISH
0.86 -4.2 MelintaTherap
DareBioscience DARE
MLNT
41.04 -1.2 MerrimackPharm MACK
Dave&Buster's PLAY
49.86 -2.1 MYndAnalytics MYND
DentsplySirona XRAY
7.87 -4.8 NatlStoragePfdA NSApA
Dermira
DERM
13.69 -2.1 NaviosMaritime NM
DeutscheBank
DB
22.76 -2.1 NaviosMaritimPf NMpG
DianaShippingNts DSXN
0.55 -1.7 NaviosMariPfdH NMpH
DiffusionPharm DFFN
7.25 -5.4 NaviosMaritimeMid NAP
DiversicareHlthcr DVCR
1.94
... NuSTAREnergy NS
ECA Marcellus
ECT
1.39 -7.3 Nutrisystem
EP Energy
EPE
NTRI
34.09 -1.1 ObalonTherap
EPRPropPfdE
EPRpE
OBLN
56.03 -1.5 OnconovaTherap ONTX
EQT Midstream EQM
0.86 -2.8 OpesAcqnWt
EcoStimEnergy ESES
OPESW
5.40 -7.1 OrexigenTherap OREX
EdgewaterTech EDGW
0.80 -3.7 OutfrontMedia
EldoradoGold
EGO
OUT
15.88 -11.7 Ovascience
EmpireResorts NYNY
OVAS
9.05 -1.8 ParkerDrilling
EnbridgeEnPtrs EEP
PKD
3.41 -8.6 Patterson
EnergyXXIGulfCoast EGC
PDCO
5.42 -4.7 PA REIT PfdD
EnzoBiochem
ENZ
PEIpD
9.25 -13.3 PA Reit
Evolus
EOLS
PEI
3.77
15.55
3.38
4.51
24.79
5.70
18.50
0.68
0.82
15.10
7.20
21.76
83.56
18.01
6.55
38.66
10.15
1.53
13.69
3.65
12.40
11.59
14.40
5.35
16.43
6.05
16.40
8.25
54.82
6.40
7.60
8.03
1.45
23.96
0.89
12.65
12.71
3.92
19.40
26.85
3.29
0.85
0.35
0.17
18.53
0.79
0.67
21.36
19.01
9.20
-4.1
-2.9
-0.3
-4.4
-0.5
-3.4
-1.7
-0.5
0.7
-1.0
-5.2
-4.1
-1.2
-2.9
-32.4
-1.1
-1.4
-3.0
-0.4
-1.4
-3.0
-3.6
-2.0
-4.6
-5.1
-0.5
-1.4
-5.3
-3.0
-2.2
-10.5
-5.4
-20.9
-1.1
-3.5
-0.2
-1.4
-26.2
-2.0
-5.6
-6.7
-6.4
-2.5
-7.4
-0.6
-8.9
-6.8
-0.8
-2.3
-1.7
52-Wk %
Sym Hi/Lo Chg
20.25 -3.0
PA Reit Pfd B
PEIpB
19.53 -3.4
PennREITPfdC
PEIpC
0.76 -9.5
PetroQuestEner PQ
3.87 -5.3
Pixelworks
PXLW
0.88 -9.0
Pulmatrix
PULM
8.80 -1.1
PurpleInnovation PRPL
5.41 -7.6
RaPharm
RARX
6.05 -86.6
RedViolet
RDVT
10.57 2.6
resTORbio
TORC
71.56 -3.5
RexAmerRes
REX
1.42 -5.7
RexahnPharm
RNN
2.80 2.1
RoadrunnerTrans RRTS
3.80 -1.5
SellasLifeSci
SLS
13.81 -4.1
SandRidgeEnergy SD
0.50 -2.8
SenesTech
SNES
7.78 -4.0
SeresTherap
MCRB
20.26 -0.6
ShellMidstream SHLX
147.28 -1.9
SimonProperty SPG
31.84 -2.8
Sohu.com
SOHU
89.37 -2.4
SpectrumBrands SPB
0.88 -12.8
Sphere3D
ANY
SpiritRealtyPfdA SRCpA 21.00 -3.8
4.87 -2.4
Sprint
S
2.15 -9.6
Staffing360
STAF
21.87 -0.5
SuburbanPropane SPH
16.10 -2.9
SuperMicroComp SMCI
13.75 -2.8
SuperiorIndsIntl SUP
7.75 -0.9
THL Credit
TCRD
9.07 0.3
TatTechnologies TATT
24.34 -0.1
TaubmanCtrsPfdJ TCOpJ
26.05 -1.2
TelekmIndonesia TLK
0.52 -5.5
The9
NCTY
38.42 -1.8
ThomsonReuters TRI
1.98 -8.8
Tintri
TNTR
1.11 -7.1
TransWorldEnt TWMC
8.97 -2.6
TrueCar
TRUE
6.10 -4.2
Tuniu
TOUR
20.74 -0.8
UltraparPart
UGP
0.32 -2.3
UnionAcqnRt
LTNr
15.57 -4.5
VeriFoneSystems PAY
0.38 -4.1
Vivus
VVUS
22.68 -2.2
VoceraComm
VCRA
64.13 1.2
VornadoRealty VNO
32.55 -1.1
WesternGasEquity WGP
40.44 -2.0
WesternGasPtrs WES
0.38 -7.9
WestmorelandCoal WLB
21.83 -2.0
WestpacBanking WBK
151.50 -0.4
Whirlpool
WHR
1.24 -1.5
xGTechnology
XGTI
6.20 -2.9
YatraOnline
YTRA
March 27, 2018
Week
Latest ago
Chg From (%)
Jan. '18 Feb. '17
U.S. consumer price index
2.11
2.51
LivePerson
LPSN
LunaInnov
LUNA
MSCI
MSCI
Manitex
MNTX
MarathonPetrol MPC
MarroneBioInnova MBII
MatchGroup
MTCH
MelroseBancorp MELR
MitelNetworks MITL
MiXTelematics MIXT
MongoDB
MDB
MTechAcqn
MTEC
MyovantSciences MYOV
Napco Security NSSC
NRG Energy
NRG
Neogen
NEOG
NewaterTech
NEWA
NextEraEnergy NEE
NextEraEnergyUn NEEpQ
OpesAcquisition OPES
OptiNose
OPTN
PCSB Fin
PCSB
PROS
PRO
PagSeguroDig
PAGS
PaycomSoftware PAYC
Pfenex
PFNX
Q2Holdings
QTWO
Quidel
QDEL
QuorumHealth QHC
RayonierAdvPfdA RYAMpA
RayonierAdvMatls RYAM
RedHat
RHT
Seacor
CKH
SMART Global SGH
SS&C Tech
SSNC
ShotSpotter
SSTI
SolarEdgeTech SEDG
Surmodics
SRDX
TPGPaceEnergyWt TPGE.WS
Tapestry
TPR
TiberiusAcqn
TIBRU
TravelportWorldwd TVPT
TriStateCapPfA TSCAP
52-Wk %
Sym Hi/Lo Chg
52-Wk %
Sym Hi/Lo Chg Stock
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always
represent actual transactions.
Feb. index
level
2.12
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
1.76
2.17
Stock
Week
ago
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
4.75 4.50 4.75 4.00
3.45 3.45 3.45 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.83
0.76
Federal funds
Effective rate
High
Low
Bid
Offer
1.82
1.48
1.7000
1.9000
1.6000
1.6700
1.7000
0.8400
1.0625
0.7000
0.8100
0.8200
2.00
ADVERTISEMENT
Business Real Estate & Services
2.25
1.50
1.87688
2.30200
2.45299
2.67138
1.85382
2.24814
2.40988
2.65138
1.87688
2.30200
2.45380
2.67700
0.98222
1.14678
1.39072
1.69511
One month
Three month
Six month
One year
-0.409
-0.376
-0.331
-0.251
-0.411
-0.389
-0.333
-0.253
-0.391
-0.356
-0.249
-0.119
-0.420
-0.389
-0.339
-0.263
Euro interbank offered rate (Euribor)
30-year mortgage yields
30 days
4.067 4.073 4.109 3.253
60 days
4.096 4.102 4.139 3.281
One month
Three month
Week
Latest ago
52-Week
high
low
Call money
3.25
3.50
90 days
1.92
2.09
2.25
-0.371 -0.370 -0.366 -0.375
-0.329 -0.329 -0.325 -0.332
-0.271 -0.273 -0.241 -0.279
-0.191 -0.191 -0.109 -0.194
Six month
One year
Latest
Value
Traded
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
1.802 25.200 1.836 0.791
1.829 113.940 1.852 0.794
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Mar
Treasury Apr
Treasury May
98.335 unch. 2126 1.665
98.220 unch. 1629 1.780
98.225 0.005 825 1.775
Notes on data:
Other short-term rates
2.75
Commercial paper (AA financial)
2.25
One month
Three month
Six month
One year
Euro Libor
Secondary market
3.50
Discount
—52-WEEK—
High Low
Fannie Mae
U.S. government rates
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
1.4800
1.6500
1.4000
1.4200
1.4700
1.705 1.720 1.720 0.695
1.760 1.780 1.780 0.780
1.895 1.950 1.950 0.905
4 weeks
13 weeks
26 weeks
Week
Latest ago
Libor
1.7000
1.9000
1.6000
1.6700
1.7000
Treasury bill auction
Overnight repurchase
U.S.
—52-WEEK—
High Low
0.95
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest
U.S. banks, and is effective March 22, 2018. Other prime rates aren’t directly comparable;
lending practices vary widely by location; Discount rate is effective March 22, 2018. DTCC
GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight
trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates
are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the DTCC GCF Repo Index are
traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Tullett Prebon Information, Ltd.
.
THE WALL STREET JOURNAL.
B8 | Wednesday, March 28, 2018
COMMODITIES
WSJ.com/commodities
Futures Contracts
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
2.9760
2.9775
2.9760
2.9915 0.0310
March
May
2.9840
3.0240
2.9775
3.0005 0.0305
Gold (CMX)-100 troy oz.; $ per troy oz.
...
...
... 1341.30 –13.10
March
April
1353.60 1356.80
1339.60 1342.00 –13.00
June
1359.30 1362.60
1345.40 1347.90 –13.00
Aug
1365.80 1368.20
1351.90 1354.10 –13.00
Oct
1371.00 1372.00
1359.00 1360.10 –13.00
Dec
1376.80 1380.90
1364.20 1366.60 –13.10
Palladium (NYM) - 50 troy oz.; $ per troy oz.
...
...
...
975.30
4.95
March
June
970.80
978.85
966.60
971.80
4.95
Sept
967.10
968.10
965.00
966.65
4.95
Platinum (NYM)-50 troy oz.; $ per troy oz.
952.80
961.60
939.20
946.70 –3.70
April
July
958.50
967.40
945.00
952.40 –4.00
Silver (CMX)-5,000 troy oz.; $ per troy oz.
...
...
...
16.489 –0.143
March
May
16.690
16.810
16.465
16.541 –0.143
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
65.55
66.41
64.53
65.25 –0.30
May
June
65.47
66.27
64.49
65.18 –0.23
July
65.09
65.88
64.17
64.86 –0.17
Sept
64.00
64.71
63.25
63.83 –0.09
Dec
62.35
63.05
61.68
62.29
0.01
Dec'19
57.52
58.11 s
57.14
57.67
0.15
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
2.0170
2.0460
2.0050
2.0224 .0074
April
May
2.0199
2.0485
2.0065
2.0242 .0062
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
2.0110
2.0330
1.9987
2.0135 .0031
April
May
2.0199
2.0426
2.0060
2.0210 .0007
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.629
2.707
2.623
2.691
.073
April
May
2.669
2.721
2.660
2.714
.057
June
2.728
2.774
2.719
2.766
.050
July
2.789
2.830
2.780
2.822
.045
Sept
2.788
2.829
2.782
2.823
.039
Oct
2.805
2.842
2.795
2.836
.040
Open
interest
302
150,761
475
108,630
327,650
49,357
6,801
45,274
1
22,978
1,193
12,588
61,898
84
149,163
512,488
347,725
156,042
170,143
251,898
133,839
25,793
128,061
25,530
160,898
5,560
389,906
93,399
154,195
96,749
130,534
Agriculture Futures
May
July
374.00
382.50
376.00
384.50
372.25
380.75
374.00
382.50
May
July
227.75
236.50
228.75
236.50
225.50
233.00
226.00
233.50
Oats (CBT)-5,000 bu.; cents per bu.
Settle
Chg
… 655,498
… 484,252
–.50
–1.75
4,472
1,137
Open
interest
May
July
1027.00
1037.75
1031.25
1042.00
1017.25
1028.00
1019.50
1030.25
–6.00 352,099
–6.25 244,829
May
July
376.70
379.40
378.50
381.00
371.50
374.20
372.40
375.10
–2.60 190,304
–2.70 123,062
May
July
31.46
31.72
31.64
31.89
31.35
31.61
31.58
31.85
.12 237,560
.13 123,056
Soybean Meal (CBT)-100 tons; $ per ton.
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
t
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
1345.93
1446.87
1341.45
1489.01
*1348.40
*1352.40
1396.10
1409.52
1409.52
1626.53
1318.82
1409.52
Silver, troy oz.
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
16.6200
19.9440
16.5510
20.6890
£11.7900
–.20
1.90
9,537
1,977
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
June
Sept
144-140 145-280
143-280 144-150
144-110
143-280
145-200
144-210
29.0 793,328
30.0
78
June
Sept
120-120 121-015
120-090 120-195
120-110
120-010
120-290
120-205
14.0 3,490,478
14.5
454
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
454.25
471.50
457.50
474.00
448.75
466.00
449.00
466.50
–5.25 223,995
–5.00 128,565
March
June
114-162 114-162
114-015 114-145
114-160
114-007
114-215
114-120
9.2
2,819
9.0 3,366,565
May
July
469.50
488.50
473.00
492.00
463.75
483.00
464.00
483.50
–4.25 108,637
–4.25 80,634
March
June
106-177 106-187
106-077 106-117
106-172
106-072
106-185
106-107
1.7 11,641
2.7 1,889,733
May
July
597.75
605.25
604.00
611.25
591.25
599.75
593.25
601.75
–4.00
–3.25
32,649
12,612
March
April
March
May
135.000
135.550
135.800
137.875
135.000
135.425
135.425
136.350
.500
.800
3,284
19,288
June
93.969
93.969
94.625
.563
27,183
April
June
115.400
105.325
116.575
106.675
115.000
104.900
115.425
105.250
May
June
98.1000
97.9550
98.1000
97.9600
98.1000
97.9550
98.1025
97.9475
.0175
.0175
1,411
694
April
June
58.000
74.150
58.225
74.750
57.525
73.725
57.750
74.025
–.275
–.075
25,619
97,970
April
June
Dec
Dec'19
97.7200
97.6800
97.4750
97.1350
97.7450
97.7400
97.5500
97.2350
97.7200
97.6800
97.4700
97.1300
97.7400
97.7300
97.5400
97.2200
.0200
.0500
.0600
.0800
303,879
1,777,799
2,045,185
2,167,522
May
July
499.40
485.00
507.10
494.90
498.00
482.00
507.00
494.90
9.90
10.00
5,421
813
…
.05
4,245
3,379
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
t
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
.250 45,226
–.050 160,211
Milk (CME)-200,000 lbs., cents per lb.
March
14.22
14.23
14.22
14.22
May
14.39
14.40
14.31
14.39
Cocoa (ICE-US)-10 metric tons; $ per ton.
May
2,623
2,623
2,534
2,554
July
2,650
2,650
2,564
2,583
Coffee (ICE-US)-37,500 lbs.; cents per lb.
May
118.40
119.75
117.70
118.95
July
120.45
121.70
119.80
121.00
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
May
12.42
12.58
12.35
12.54
July
12.63
12.72
12.54
12.66
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
May
24.45
24.45
t
24.45
24.45
July
25.05
25.05
t
24.91
25.02
Cotton (ICE-US)-50,000 lbs.; cents per lb.
May
81.88
82.77
81.72
82.02
Dec
77.50
77.92
77.50
77.62
Other metals
LBMA Platinum Price PM
*950.0
Platinum,Engelhard industrial
952.0
Platinum,Engelhard fabricated
1052.0
Palladium,Engelhard industrial
985.0
Palladium,Engelhard fabricated
1085.0
Aluminum, LME, $ per metric ton
*2022.0
Copper,Comex spot
2.9915
Iron Ore, 62% Fe CFR China-s
63.5
Shredded Scrap, US Midwest-s,m
366
Steel, HRC USA, FOB Midwest Mill-s
868
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6100
0.8102
*91.05
n.a.
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
n.a.
87
3.3950
108.8
520.0
320
98
295
2.6350
25.50
8.0625
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
1.0589
.7749
.7735
.7757
.7756
.7740
April
May
June
Sept
Dec
.7754
.7750
.7760
.7763
.7740
t
June
.05382
.05396
April
June
1.2477
1.2525
1.2495
1.2554
1.2395
1.2448
1.2421 –.0056
1,781
1.2478 –.0057 508,863
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
June
Sept
24201
24231
24435
24454
23691
23736
2661.20
2679.20
2598.00
June
Sept
2659.50
2665.00
2679.75
2684.25
2596.00
2600.75
1881.20
1892.40
1843.90
June
Sept
6775.8
6814.5
6849.3
6879.0
6490.0
6522.5
1548.00
1557.00
1509.10
1.4248
1.4285
1.4248
1.4293
1.4083
1.4113
1.4167 –.0074
1,125
1.4201 –.0075 180,805
31.9000
0.2200
n.a.
0.2993
0.2475
n.a.
INVESTMENT PROPERTIES
&
6561.3 –212.3 229,719
6592.8 –213.0
4,632
1518.80 –26.30
9,254
Mini Russell 1000 (ICE-US)-$100 x index
1478.20
1478.20
88.63
88.29
June
Sept
1441.10
89.25
88.74
1451.70
14.20
42
88.98
88.58
–.05
.38
35,464
949
88.53
88.19
Source: SIX Financial Information
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
1910.87
-1.7
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
3.160 2.380 3.230
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
1961.03
-1.4
Mortgage-Backed
1924.86
-1.5
Ginnie Mae (GNMA) 3.360 2.630 3.410
3.370 2.660 3.410
2723.31
-2.7
U.S. Corporate
3.800 3.030 3.860
1150.61
-1.3
Fannie mae (FNMA) 3.360 2.670 3.410
2575.92
-1.7
Intermediate
3.490 2.530 3.550
1772.21
-1.4
Freddie Mac (FHLMC) 3.380 2.680 3.420
Long term
4.460 3.990 4.530
515.76
-1.2
Muni Master
2.498 1.736 2.520
556.17
-2.1
Double-A-rated
3.250 2.470 3.320
358.49
-1.9
7-12 year
2.597 1.744 2.635
703.44
-2.5
Triple-B-rated
4.070 3.340 4.120
405.00
-1.7
12-22 year
2.870 2.213 2.905
393.06
-1.8
22-plus year
3.257 2.716 3.296
3745.80 -4.9
413.94
-0.9
High Yield Constrained 6.384 5.373 6.410
Global Government J.P. Morgan†
Triple-C-rated
10.721 9.640 11.091
543.41
-0.1
2826.51
-1.2
High Yield 100
6.260 4.948 6.319
754.76
-0.01
376.27
-0.7
Global High Yield Constrained 5.726 4.934 5.746
375.13
304.94
-0.5
Europe High Yield Constrained 2.835 1.897 3.145
0.6
422.90
U.S Agency Bloomberg Barclays
Global Government 1.500 1.300 1.650
Canada
2.160 1.570 2.340
1.3
EMU§
1.057 0.956 1.311
715.78
0.7
France
0.820 0.690 1.090
508.45
0.2
Germany
0.520 0.210 0.740
1626.86
-0.7
U.S Agency
2.570 1.690 2.650
290.20
0.5
Japan
0.360 0.340 0.460
1456.41
-0.4
10-20 years
2.450 1.490 2.530
562.17
0.3
Netherlands
0.620 0.390 0.830
U.K.
1.570 1.340 1.830
3313.75
-2.2
20-plus years
3.210 2.730 3.400
928.88
2417.98
-1.8
Yankee
3.450 2.610 3.500
790.30
-0.2
-2.2
Emerging Markets ** 6.044 5.279 6.104
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
2.250
2.750
4.500
Australia 2
10
0.050
2.000
0.100
1.400
Latest(l)-2 -1
0
1
l
l
2.043 t
2.665 t
l
l
France 2 -0.500 t
10 0.733 t
l
Germany 2 -0.612 t
10 0.505 t
l
l
l
Italy 2 -0.312 t
10 1.873 t
l
Japan 2 -0.148 s
10 0.039 s
l
Spain 2 -0.332 t
10 1.234 t
l
2.000
U.K. 2
4.250
10
Yield (%)
3 4 Previous
2
U.S. 2 2.282 s
10 2.791 t
2.250
1.400
79,747
Tracking Bond Benchmarks
0.100
ILLINOIS
1851.90 –28.70
Bonds | WSJ.com/bonds
High Yield Bonds Merrill Lynch
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
2615.75 –43.75 2,889,651
2620.25 –44.25 56,806
Mini Russell 2000 (ICE-US)-$100 x index
June
April
June
199.71
191.10
1.0613
2.1800
150.00
154.50
69.75
2892
1.1863
1.3803
2.6550
15.00
n.a.
67.41
1.2476
0.8943
n.a.
162.50
50,596
Mini Nasdaq 100 (CME)-$20 x index
.80 140,765
1.60 59,291
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
2615.70 –43.80
Mini S&P Midcap 400 (CME)-$100 x index
June
U.S. Dollar Index (ICE-US)-$1,000 x index
Food
–332 102,806
–337
490
Mini S&P 500 (CME)-$50 x index
June
376.90
9.7200
7.3325
4.5000
4.5400
5.4950
23859
23890
S&P 500 Index (CME)-$250 x index
June
.7770 –.0005
249
.7778 –.0006 121,883
Tuesday
1,390
492
98,419
643
343
.05381 –.00016 197,395
.7760
.7761
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
–.0047
–.0047
–.0048
–.0048
–.0049
.05361
.7802
.7815
.24 113,430
–.04 72,650
.7688
.7688
.7689
.7695
.7701
Euro (CME)-€125,000; $ per €
.7792
.7795
3,218
2,674
44,398
Mexican Peso (CME)-MXN 500,000; $ per MXN
Canadian Dollar (CME)-CAD 100,000; $ per CAD
–.03
–.13
1.0632 –.0028
.7680
.7694
.7677
.7688
.7683
April
June
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
8
09:;
! 0 1.0674
–61 110,387
–59 76,393
Business Real Estate & Auctions
+$+3 4 $% 56 7 % ' * ++ 5 . 1.0656
.9489 –.0030
851
.9528 –.0030 168,978
.12 417,923
–.10 236,270
Open
interest
Australian Dollar (CME)-AUD 100,000; $ per AUD
.9460
.9494
British Pound (CME)-£62,500; $ per £
Chg
Swiss Franc (CME)-CHF 125,000; $ per CHF
June
.9500
.9546
0.500
$ %! & $'(%)$$
* +, * **$ (++ +-
+ +. + * $$ / $
$ 01 ! ! 2 94.781 s
Japanese Yen (CME)-¥12,500,000; $ per 100¥
0.000
… 122,332
… 364,065
Currency Futures
ADVERTISEMENT
! "# " 98.498
98.325
Eurodollar (CME)-$1,000,000; pts of 100%
0.750
98.498
98.320
1 Month Libor (CME)-$3,000,000; pts of 100%
0.000
98.500
98.325
Settle
.9488
.9527
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 3/26
Source: WSJ Market Data Group
MARYLAND
98.500
98.325
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Contract
High hilo
Low
Open
April
June
Tuesday
16.6400
12211
Fibers and Textiles
Gold, per troy oz
137.70
138.00
May
July
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Metals
136.20
137.00
1244.50
1261.00
Tuesday
0.8238
0.9315
2.600
2.570
2.570
1.970
1.960
2.110
2.480
63.000
12.400
138.35
138.60
1239.50
1255.00
Wheat (MPLS)-5,000 bu.; cents per bu.
5,814
1,348
138.10
138.40
1250.00
1262.50
Wheat (KC)-5,000 bu.; cents per bu.
–1.50
…
May
July
Open
interest
Chg
1242.00
1261.50
Wheat (CBT)-5,000 bu.; cents per bu.
Tuesday, March 27, 2018
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Settle
May
July
Cash Prices | WSJ.com/commodities
Energy
Contract
High hilo
Low
Open
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Soybeans (CBT)-5,000 bu.; cents per bu.
Metal & Petroleum Futures
Corn (CBT)-5,000 bu.; cents per bu.
Contract
High hilo
Low
Open
l
l
l
0.889 t
1.419 t
l
l
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
Month ago
Year ago
2.279
2.856
2.266
2.897
1.257
2.377
2.049
1.962
1.732
-23.9
-23.0
47.5
2.675
2.743
2.713
-12.6
-18.1
33.6
-0.479
-0.429
-172.1
0.951
-0.464 -278.2
0.981
-205.8
-275.8
0.759
-209.7
-139.5
-0.600
-0.580
-287.8
-197.1
0.524
0.678
-0.714 -289.4
0.401
-228.6
-233.2
-197.6
-0.284
-0.181
-0.049
-259.4
-256.3
-130.6
1.916
1.995
2.201
-91.9
-94.0
-17.6
-0.154
-0.161
-0.258
-243.0
-243.3
-151.5
0.027
0.046
0.061
-275.2
-282.9
-231.5
-0.322
-0.345
-0.224
-261.4
-260.1
-148.1
1.258
1.481
1.689
0.895
0.729
1.441
1.562
-155.7
-159.8
-68.8
0.170
-139.4
-138.4
-108.7
1.169
-137.2
-141.5
-120.7
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Spread*, in basis points
One-day change
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
Liberty Mutual
VMware
Lincoln National
General Electric
LIBMUT
VMW
LNC
GE
6.500
2.300
6.150
5.000
May 1, ’42
Aug. 21, ’20
April 7, ’36
Jan. 21, ’49
140
97
162
225
–26
–25
–14
–13
n.a.
117
n.a.
222
...
123.37
71.96
13.44
...
–2.11
–1.57
4.27
Toronto–Dominion Bank*
BB&T
HSBC Holdings
Virginia Electric And Power
TD
BBT
HSBC
D
2.500 Dec. 14, ’20
2.750
April 1, ’22
6.500 March 23, ’49
3.800
April 1, ’28
64
66
323
84
–12
–11
–11
–10
70
52
331
n.a.
56.27
51.58
47.61
…
–1.44
–1.23
–1.31
…
53.15
17.47
43.48
102.24
–2.12
–0.85
–1.38
–3.15
108.17
...
119.98
247.26
–1.94
...
–5.11
–2.99
Maturity
Current
Last week
…And spreads that widened the most
NEW YORK
Morgan Stanley
UBS AG
AFLAC
Eagle Materials
MS
UBS
AFL
EXP
5.450
7.625
6.900
4.500
July 15, ’49
Aug. 17, ’22
Dec. 17, ’39
Aug. 1, ’26
91
192
153
152
19
16
n.a.
172
n.a.
n.a.
'( ) **+ ,-. ))).
/-
'+ 0 1. 2 3).- '(+ -4
-.0 3. .1 .1-5 011 -/0).5
JPMorgan Chase
Berkshire Hathaway Energy
Electronic Arts
Goldman Sachs
JPM
BRKHEC
EA
GS
6.000
Aug. 1, ’49
2.375 Jan. 15, ’21
3.700 March 1, ’21
6.000 June 15, ’20
214
67
83
99
16
13
12
12
198
n.a.
73
84
< 2 !8 FLORIDA
#$%& '(#%
)(*+(*,
' '+ *++ -.)
661). 0) 5 1)6.!
"!/ !!- ,)#!- $ %!&
!6.! !0.) -/).-. !) $
7,).1-)
!" !
#$ " "%& "
'()*+,-./0(#)
AUCTIONS
FLORIDA
!"
! "
# $ % NOTABLE
COMMERCIAL
PROPERTIES
EVERY WEDNESDAY
(800) 366-3975
sales.realestate@wsj.com
For more information visit:
wsj.com/classifieds
© 201 Dow Jones & Company, Inc.
All Rights Reserved.
52
41
High-yield issues with the biggest price increases…
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Sprint
Tallgrass Energy Partners
CHS/Community Health Systems
Neiman Marcus
S
TEP
CYH
NMG
7.875 Sept. 15, ’23
5.500 Jan. 15, ’28
7.125 July 15, ’20
8.000 Oct. 15, ’21
103.500
100.500
81.250
63.750
Charter Communications Operating
Spectrum Management Holding
Sabre GLBL
DISH DBS
CHTR
TWC
TSG
DISH
5.375
5.500
5.250
5.875
96.408
99.302
101.250
95.950
May 1, ’47
Sept. 1, ’41
Nov. 15, ’23
July 15, ’22
1.50
1.38
1.25
1.25
1.25
1.17
1.14
1.11
Last week
Stock Performance
Close ($)
% chg
103.000
99.500
79.875
66.500
4.89
37.60
…
...
95.730
n.a.
101.030
94.500
…
...
…
…
100.750
88.875
92.750
103.120
33.67
...
279.18
...
–4.89
...
–8.22
...
99.000
87.500
n.a.
81.000
14.50
7.17
...
...
–1.36
1.85
...
...
–2.40
6.82
…
...
…
...
…
…
…And with the biggest price decreases
6.250 March 15, ’26
6.375
Feb. 1, ’25
5.300 Aug. 15, ’25
8.625 Nov. 15, ’24
United States Steel
TeamHealth Holdings
Tesla
Rackspace Hosting
X
TMH
TSLA
RAX
Covanta Holding
Frontier Communications
GenOn Energy
Monitronics International
CVA
5.875
FTR
10.500
GENONE 9.875
MONINT 9.125
March 1, ’24
Sept. 15, ’22
Oct. 15, ’20
April 1, ’20
99.500 –1.80
–1.63
85.000
–1.50
91.000
–1.38
98.000
98.250
85.250
80.500
77.625
–1.00
–1.00
–1.00
–0.88
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | B9
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
Footnotes:
The following explanations apply to NYSE,
s-New 52-week high.
NYSE Arca, NYSE American and Nasdaq Stock t-New 52-week low.
Market listed securities. Prices are composite dd-Indicates loss in the most recent
quotations that include primary market trades four quarters.
as well as trades reported by Nasdaq BX
FD-First day of trading.
(formerly Boston), Chicago Stock Exchange,
h-Does not meet continued listing
Cboe, NYSE National and Nasdaq ISE.
standards
The list comprises the 1,000 largest
lf-Late filing
companies based on market capitalization.
q-Temporary exemption from Nasdaq
Underlined quotations are those stocks with requirements.
t-NYSE bankruptcy
large changes in volume compared with the
v-Trading halted on primary market.
issue’s average trading volume.
vj-In bankruptcy or receivership or
Boldfaced quotations highlight those issues being reorganized under the
whose price changed by 5% or more if their
Bankruptcy Code, or securities
previous closing price was $2 or higher.
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Tuesday, March 27, 2018
Net
Stock
Sym Close Chg
A B C
ABB
ABB 23.25 -0.22
t ADT
ADT 7.56 -0.39
AES
AES 10.95 0.11
Aflac
AFL 43.48 -0.61
AGNC Invt AGNC 18.98 0.13
ANGI Homesvcs ANGI 13.52 -0.65
Ansys
ANSS 157.05 -3.96
ASML
ASML 200.29 -7.16
AT&T
T
34.90 0.21
AbbottLabs ABT 60.28 -0.79
AbbVie
ABBV 92.01 -3.27
Abiomed
ABMD 286.43 -8.97
Accenture ACN 148.86 -3.99
ActivisionBliz ATVI 66.29 -3.79
AcuityBrands AYI 135.95 -1.72
AdobeSystems ADBE 213.80-15.11
AdvanceAuto AAP 115.01 0.24
AdvMicroDevices AMD 10.00 -0.44
AdvSemiEngg ASX 7.19 -0.07
Aegon
AEG 6.65 -0.12
AerCap
AER 49.96 -0.42
Aetna
AET 168.36 -2.39
AffiliatedMgrs AMG 185.23 -3.37
AgilentTechs A
67.00 -1.20
AgnicoEagle AEM 41.91 -0.46
AirProducts APD 158.63 -2.31
AkamaiTech AKAM 70.75 -1.43
AlaskaAir ALK 61.49 -0.67
Albemarle ALB 93.43 -0.93
Alcoa
AA 44.90 -0.87
AlexandriaRlEst ARE 121.98 0.87
AlexionPharm ALXN 108.33 -3.22
Alibaba
BABA 181.89 -8.61
AlignTech ALGN 248.30-13.22
Alkermes ALKS 59.05 -1.61
Alleghany Y
590.81-15.13
Allegion
ALLE 84.00 -0.56
Allergan
AGN 160.32 0.12
AllianceData ADS 219.12 -3.13
AlliantEnergy LNT 40.53 0.69
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Allstate
ALL 93.39 -1.13 AquaAmerica WTR 33.34 0.32
AllyFinancial ALLY 26.22 -0.46 Aramark
ARMK 39.60 -0.27
AlnylamPharm ALNY 131.18 -7.33 ArcelorMittal MT 30.64 -0.65
Alphabet A GOOGL 1006.94-47.15 ArchCapital ACGL 84.47 0.18
Alphabet C GOOG 1005.10-48.11 ArcherDaniels ADM 42.87 0.04
ARNC 23.05 -0.33
Altaba
AABA 73.03 -2.78 Arconic
t AlticeUSA ATUS 17.92 -0.08 AristaNetworks ANET 253.70-17.28
Altria
MO 60.72 1.12 ArrowElec ARW 75.77 -0.70
AlumofChina ACH 13.37 -0.27 AspenTech AZPN 78.75 -1.13
Amazon.com AMZN 1497.05-58.81 AstraZeneca AZN 34.67 -0.09
Ambev
ABEV 7.08 -0.12 Athene
ATH 48.24 -0.92
Amdocs
DOX 65.93 -0.67 Atlassian
TEAM 54.01 -2.61
Amerco
UHAL 341.57 -2.00 AtmosEnergy ATO 83.13 1.44
Ameren
AEE 55.88 1.03 Autodesk ADSK 128.31 -5.91
AmericaMovil AMX 19.10 -0.08 Autohome ATHM 84.40 -2.84
AmericaMovil A AMOV 19.09 0.04 Autoliv
ALV 147.58 -1.49
AmerAirlines AAL 50.90 -0.96 ADP
ADP 112.26 -1.80
AEP
AEP 68.43 1.12 AutoZone AZO 634.52 -3.94
AmerExpress AXP 91.42 -1.20 Avalonbay AVB 160.64 1.81
AmericanFin AFG 110.36 -1.92 Avangrid
AGR 50.55 0.78
AIG
AIG 53.78 -0.43 AveryDennison AVY 104.45 -1.31
AmerTowerREIT AMT 144.46 -0.75 AxaltaCoating AXTA 30.62 0.44
AmerWaterWorks AWK 80.69 0.82 BB&T
BBT 51.58 -0.64
Ameriprise AMP 147.31 -2.24 BCE
BCE 42.53 0.31
AmerisourceBrgn ABC 84.01 -0.94 BHPBilliton BHP 44.10 -0.72
Ametek
AME 75.07 -1.72 BHPBilliton BBL 39.24 -0.64
Amgen
AMGN 171.15 -4.04 BOK Fin
BOKF 97.67 -2.07
Amphenol APH 85.59 -1.50 BP
BP 39.97 -0.45
AnadarkoPetrol APC 60.80 -1.79 BT Group BT 15.73 0.02
AnalogDevices ADI 91.05 -2.06 s BWX Tech BWXT 65.55 -1.82
Andeavor ANDV 101.52 -2.26 Baidu
BIDU 230.96 -4.98
AndeavorLog ANDX 43.16 -0.61 BakerHughes BHGE 29.20 -0.71
AB InBev BUD 107.47 -0.28 Ball
BLL 39.19 -0.12
AnnalyCap NLY 10.60 0.03 BancoBilbaoViz BBVA 7.66 -0.16
AnteroResources AR 19.22 -0.53 BancodeChile BCH 100.34 -0.80
Anthem
ANTM 219.44 -1.64 BancoMacro BMA 108.02 -0.58
Aon
AON 138.82 -1.98 BcoSantChile BSAC 32.47 0.05
Apache
APA 37.48 0.20 BcoSantMex BSMX 7.11 0.21
ApartmtInv AIV 39.55 0.45 BancoSantander SAN 6.44 -0.12
ApolloGlbMgmt APO 30.23 -0.28 BanColombia CIB 41.94 -0.82
Apple
AAPL 168.34 -4.43 BankofAmerica BAC 29.52 -0.92
ApplMaterials AMAT 55.44 -3.03 BankofMontreal BMO 74.83 -0.69
Aptiv
APTV 84.33 -0.71 BankNY Mellon BK 50.72 -1.42
Stock
Net
Sym Close Chg
Net
Sym Close Chg
Stock
BkNovaScotia BNS 60.91 -0.69 CanNtlRlwy CNI 71.67 -0.13
BankofOzarks OZRK 46.98 -1.05 CanNaturalRes CNQ 30.66 0.82
Barclays
BCS 11.70 -0.27 CanPacRlwy CP 173.95 0.65
CAJ 35.90 -0.48
BarrickGold ABX 12.56 -0.20 Canon
BaxterIntl BAX 64.87 -0.62 CapitalOne COF 93.62 -1.45
BectonDicknsn BDX 213.02 -2.23 CardinalHealth CAH 61.22 -0.88
CSL 103.34 -1.87
BeiGene
BGNE 165.10 0.38 Carlisle
CG 21.30 -0.10
Berkley
WRB 71.22 -0.51 Carlyle
KMX 59.75 -0.84
BerkHathwy B BRK.B 196.15 -3.19 CarMax
CCL 65.73 -0.07
BerkHathwy A BRK.A 300080580.10 Carnival
CUK 65.60 0.01
BerryGlobal BERY 54.13 0.17 Carnival
BestBuy
BBY 67.74 -1.77 Caterpillar CAT 146.99 -2.20
CAVM 82.15 -1.99
Bio-RadLab A BIO 249.58 -3.92 Cavium
Biogen
BIIB 265.16 -3.04 CboeGlobalMkts CBOE 112.06 -2.53
BioMarinPharm BMRN 78.04 -2.26 Celanese A CE 98.75 0.28
CELG 85.81 -1.36
BlackKnight BKI 46.95 -0.70 Celgene
CX
6.82 -0.20
BlackBerry BB 12.40 -0.69 Cemex
BlackRock BLK 532.11 -8.61 CenovusEnergy CVE 8.19 -0.11
CNC 101.14 -0.56
Blackstone BX 31.77 -0.48 Centene
BlueBuffaloPet BUFF 39.78 0.01 CenterPointEner CNP 27.09 0.25
bluebirdbio BLUE 175.20-13.75 CentraisElBras EBR 6.64 -0.17
Boeing
BA 321.12 -7.85 CenturyLink CTL 16.13 -0.08
CERN 57.65 -0.12
BookingHldgs BKNG 2077.56-56.15 Cerner
BorgWarner BWA 49.20 -1.11 CharterComms CHTR 310.22 -1.96
BostonProps BXP 120.87 1.00 CheckPoint CHKP 99.10 -1.75
BostonSci BSX 27.03 -0.22 Chemours CC 46.62 -0.84
Braskem
BAK 27.42 -1.11 CheniereEnergy LNG 53.06 0.56
BrightHorizons BFAM 97.86 -6.81 CheniereEnerPtrs CQP 28.21 0.05
t BrighthouseFin BHF 50.63 -1.48 CheniereEnHldgs CQH 27.58 0.10
CVX 114.66 -0.69
Bristol-Myers BMY 62.41 -0.99 Chevron
BritishAmTob BTI 55.58 -0.13 ChinaEastrnAir CEA 37.01 -1.15
Broadcom AVGO 244.37 -3.36 t ChinaLifeIns LFC 13.83 -0.32
BroadridgeFinl BR 107.34 -0.66 ChinaLodging HTHT 123.14 -7.88
BrookfieldMgt BAM 38.80 -0.60 ChinaMobile CHL 45.75 0.57
BrookfieldInfr BIP 40.95
... ChinaPetrol SNP 86.18 -2.40
Brown&Brown BRO 50.56 -0.48 ChinaSoAirlines ZNH 53.60 -1.56
Brown-Forman B BF.B 53.35 -0.65 ChinaTelecom CHA 42.45 0.22
Brown-Forman A BF.A 51.92 -1.12 ChinaUnicom CHU 12.51 0.42
t BuckeyePtrs BPL 37.72 -0.74 Chipotle
CMG 322.96 -4.90
CB 136.70 -0.32
Bunge
BG 72.61 -0.58 Chubb
BurlingtonStrs BURL 130.01 -2.16 s ChunghwaTel CHT 38.15 0.12
CA
CA 33.43 -0.72 Church&Dwight CHD 48.16 0.79
CI 165.54 -3.14
CBD Pao
CBD 19.80 0.40 Cigna
CBRE Group CBRE 46.68 -0.07 CimarexEnergy XEC 93.63 -1.14
CBS A
CBS.A 53.04 1.64 CincinnatiFin CINF 73.13 -0.01
CTAS 169.59 -1.39
CBS B
CBS 52.35 0.66 Cintas
CDK Global CDK 62.84 -1.28 CiscoSystems CSCO 42.68 -1.38
C
68.28 -1.50
CDW
CDW 70.21 -1.37 Citigroup
CF Industries CF 37.50 0.15 CitizensFin CFG 41.59 -1.53
CGI Group GIB 56.82 -1.02 CitrixSystems CTXS 92.46 -1.33
CLX 126.38 2.16
CH Robinson CHRW 91.56 -1.20 Clorox
CIT Group CIT 51.42 -0.74 Coca-Cola KO 42.89 0.20
CME Group CME 159.00 -2.71 Coca-Cola Euro CCE 40.55 0.07
CMS Energy CMS 44.75 0.93 t Coca-Cola Femsa KOF 64.79 -0.10
CGNX 53.33 -0.72
CNA Fin
CNA 49.15 -0.91 Cognex
CNOOC
CEO 147.46 -3.74 CognizantTech CTSH 80.08 -1.55
CPFLEnergia CPL 14.51 -0.05 ColgatePalm CL 69.28 1.09
CRH
CRH 33.27 -0.55 Comcast A CMCSA 32.99 -0.55
CMA 94.43 -1.71
CSRA
CSRA 41.33 -0.07 Comerica
CSX
CSX 54.70 -0.95 CommerceBcshrs CBSH 58.72 -1.07
t CVS Health CVS 60.60 -1.00 CommScope COMM 39.39 -0.74
SBS 10.57 -1.04
CabotOil
COG 23.79 -0.18 SABESP
CadenceDesign CDNS 36.40 -1.06 ConagraBrands CAG 36.30 -0.06
CaesarsEnt CZR 11.00 -0.18 ConchoRscs CXO 157.00 -0.22
CamdenProperty CPT 82.30 0.30 ConocoPhillips COP 59.14 0.06
ED 77.62 1.20
CampbellSoup CPB 42.69 0.22 ConEd
CIBC
CM 87.65 -0.30 ConstBrands A STZ 218.47 -1.88
Net
Sym Close Chg
Stock
s ContinentalRscs CLR 57.26
Cooper
COO 225.09
s Copart
CPRT 49.99
Corning
GLW 27.74
CoStar
CSGP 359.99
Costco
COST 183.15
Coty
COTY 18.29
Credicorp
BAP 221.68
CreditAcceptance CACC 328.76
CreditSuisse CS 16.55
CrownCastle CCI 110.67
CrownHoldings CCK 50.12
Ctrip.com CTRP 46.30
Cullen/Frost CFR 103.26
Cummins
CMI 158.75
CurtissWright CW 134.47
CypressSemi CY 17.15
D E F
t DISH Network DISH 37.25
DTE Energy DTE 103.81
DXC Tech DXC 101.97
Danaher
DHR 97.25
Darden
DRI 84.22
DaVita
DVA 65.34
Deere
DE 152.16
DellTechs DVMT 73.68
DeltaAir
DAL 54.26
t DentsplySirona XRAY 50.03
t DeutscheBank DB 13.77
DevonEnergy DVN 31.71
DexCom
DXCM 69.99
Diageo
DEO 133.02
s DiamondbkEner FANG 129.18
DigitalRealty DLR 102.71
DiscoverFinSvcs DFS 70.23
DiscovComm C DISCK 19.73
DiscovComm B DISCB 35.95
DiscovComm A DISCA 21.68
Disney
DIS 99.36
DolbyLab
DLB 63.58
DollarGeneral DG 92.43
DollarTree DLTR 93.63
DominionEner D
69.22
Domino's
DPZ 231.58
Donaldson DCI 44.07
DouglasEmmett DEI 36.08
Dover
DOV 98.11
DowDuPont DWDP 63.64
DrPepperSnap DPS 118.28
DropBox
DBX 29.90
DukeEnergy DUK 77.10
DukeRealty DRE 26.03
ENI
E
35.15
EOG Rscs EOG 106.33
EPAM Systems EPAM 113.31
EQT
EQT 47.45
E*TRADE ETFC 54.07
EastWestBncp EWBC 60.78
EastmanChem EMN 105.00
Eaton
ETN 79.71
EatonVance EV 54.56
eBay
EBAY 40.22
Ecolab
ECL 134.98
Ecopetrol
EC 19.07
EdisonInt
EIX 63.15
Stock
Net
Sym Close Chg
-1.64 EdwardsLife EW 138.11
-1.75 ElectronicArts EA 119.98
-0.94 EmersonElec EMR 67.92
-0.57 t EnbridgeEnPtrs EEP 9.35
ENB 30.44
-6.84 Enbridge
-4.07 Encana
ECA 11.12
-0.17 EnelAmericas ENIA 11.37
ENIC 6.28
-2.31 EnelChile
-0.30 EnelGenChile EOCC 26.48
EGN 58.30
-0.32 Energen
-0.66 EnergyTransferEq ETE 14.20
-0.06 EnergyTransfer ETP 16.06
ETR 79.29
-1.20 Entergy
-2.49 EnterpriseProd EPD 24.23
EFX 116.42
-1.97 Equifax
EQIX 409.88
-3.66 Equinix
-0.93 EquityLife ELS 85.86
EquityResdntl EQR 59.35
Ericsson
ERIC 6.36
EssexProp ESS 233.95
0.16 s EsteeLauder EL 146.69
1.69 EverestRe RE 250.70
-1.79 EversourceEner ES 58.59
-0.91 Exelixis
EXEL 22.44
-0.60 Exelon
EXC 38.47
-0.30 Expedia
EXPE 105.59
-1.18 ExpeditorsIntl EXPD 61.63
-1.45 ExpressScripts ESRX 70.37
-0.80 ExtraSpaceSt EXR 85.55
-1.07 ExxonMobil XOM 73.70
-0.30 F5Networks FFIV 144.96
FMC 75.28
-0.76 FMC
FB 152.22
-0.18 Facebook
FDS 201.73
-1.63 FactSet
FAST 52.85
-4.05 Fastenal
0.61 FederalRealty FRT 113.48
FDX 234.64
-1.56 FedEx
RACE 119.70
-0.16 Ferrari
-1.80 FiatChrysler FCAU 20.36
FibriaCelulose
FBR 19.27
-0.06
-1.29 FidNatlFin FNF 40.66
FidNatlInfo
FIS
94.68
-1.19
-0.22 FifthThirdBncp FITB 31.34
58.com
WUBA 79.35
-1.58
FirstAmerFin FAF 58.23
1.12 FirstData
FDC 15.79
0.30 FirstHorizonNatl FHN 18.35
-0.67 FirstRepBank FRC 90.40
0.13 FirstSolar FSLR 71.51
-1.70 FirstEnergy FE 34.53
-0.84 Fiserv
FISV 70.28
-0.14 FleetCorTech FLT 198.61
FLEX 16.66
-0.55 Flex
1.18 FlirSystems FLIR 49.93
FLR 55.76
0.61 Fluor
-0.18 FomentoEconMex FMX 89.24
10.83
-1.24 FordMotor F
s
FTNT 53.33
-3.92 Fortinet
Fortis
FTS 33.48
-1.43
Fortive
FTV 76.80
-1.49 FortBrandsHome FBHS 58.27
-2.03 Franco-Nevada FNV 70.02
-0.29 FranklinRscs BEN 37.61
-1.39 FreeportMcM FCX 17.24
-1.15 FreseniusMed FMS 50.01
-0.79
0.24
-0.75
GGP 20.08
1.14 GGP
G H I
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
J K L
M N
The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
QLACQuote.com
IncomeQuote.com
Joe Signorella
QLACS.NET
BUSINESS OPPORTUNITIES
BUSINESS OPPORTUNITIES
!
" # *5!'6!! 56'7
!" #
$ % THEMART
& '( ) * !
% '%
+,- ,./011/ 2 %3)4#%$#
!" #$
% %
&
'()' * " "
+, - -. " " ,
% - " $" " ! . / !! 0 ! &
! . " !" + ! !" ! ADVERTISE
TODAY
(800) 366-3975
sales.mart@wsj.com
For more information visit:
wsj.com/classifieds
BUSINESS SERVICES
BUSINESS OPPORTUNITIES
“SELL YOUR PRODUCTS"
To Every Retail Channel!
Proven Track Record!
Turnkey Solution!
Over 30 Years Experience!
www.IPGsales.net
561-948-4632
TRAVEL
Save Up To 60%
First & Business
INTERNATIONAL
Major Airlines, Corporate Travel
Never Fly Coach Again!
© 2018 Dow Jones & Company, Inc.
All Rights Reserved.
www.cooktravel.net
(800) 435-8776
! " #$
! "#$% &' ! (
" ) ! *+,,, ( -. / / $ +,01 ( 2/
/
34, / 4 0+5*0501 $
)6 47..7000 89:'()";
Net
Sym Close Chg
KSS 62.80 -0.97
-2.17 Gallagher
AJG 67.53 -0.70 HuntingtonBcshs HBAN 14.93 -0.35 Kohl's
-6.46 Gaming&Leisure GLPI 33.06 -0.16 HuntingIngalls HII 254.78 -7.46 KoninklijkePhil PHG 37.60 -0.56
GPS 30.52 -0.44 Huntsman HUN 29.06 -0.40 KoreaElcPwr KEP 14.46 0.18
-1.59 Gap
-0.17 GardnerDenver GDI 30.40 -0.33 HyattHotels H
77.03 -1.44 KraftHeinz KHC 60.70 -0.95
KR 23.47 -0.40
GRMN 58.14 -0.55 IAC/InterActive IAC 157.07 -6.41 Kroger
0.49 Garmin
KYO 54.53 -0.83
IT 117.61 -1.94 ICICI Bank IBN 8.70 0.03 Kyocera
-0.67 Gartner
0.08 Gazit-Globe GZT 9.55 -0.07 IdexxLab
IDXX 190.90 -6.40 LATAMAirlines LTM 14.91 -0.18
LB 38.11 0.25
0.05 GeneralDynamics GD 221.07 -2.40 s IHSMarkit INFO 48.60 0.57 L Brands
-0.19 GeneralElec GE 13.44 0.55 ING Groep ING 16.65 -0.21 t LG Display LPL 11.68 -0.44
LN 37.96 -0.34
-1.12 GeneralMills GIS 45.31 0.01 Invesco
IVZ 31.36 -0.77 LINE
LKQ 37.59 -0.27
-0.22 GeneralMotors GM 34.87 -1.12 IPG Photonics IPGP 229.76-10.74 LKQ
L3
Tech
LLL 204.52 -4.01
-0.22 Genpact
G
31.45 -0.37 IQVIA
IQV 100.06 -1.60
1.15 Gentex
GNTX 22.64 -0.54 IRSA Prop IRCP 44.28 -0.12 LabCpAm LH 162.73 -2.01
-0.28 GenuineParts GPC 88.60 -0.01 IcahnEnterprises IEP 56.78 -0.09 LamResearch LRCX 202.62-12.34
-1.55 Gerdau
GGB 4.48 -0.10 Icon
ICLR 120.58 -0.79 LamarAdv LAMR 63.28 -0.50
0.27 Gildan
GIL 28.23 -0.65 IDEX
IEX 141.51 -3.79 LambWeston LW 56.00 -0.43
1.03 GileadSciences GILD 74.11 -1.43 IllinoisToolWks ITW 155.64 -4.37 LasVegasSands LVS 71.66 1.21
0.37 GSK
LAZ 51.77 -0.77
GSK 38.39 0.96 Illumina
ILMN 237.37 -4.91 Lazard
-0.10 GlobalPayments GPN 111.12 -3.29 ImperialOil IMO 26.32 -0.25 Lear
LEA 185.07 -3.13
1.32 GoDaddy
GDDY 60.02 -2.52 Incyte
INCY 85.03 -1.34 Leggett&Platt LEG 43.62 -0.16
-1.52 Goldcorp
LDOS 64.50 -1.13
GG 13.77 -0.24 Infosys
INFY 17.72 -0.25 Leidos
-1.75 GoldmanSachs GS 247.26 -7.62 Ingersoll-Rand IR
LEN 58.67 -0.54
85.00 -1.17 Lennar A
1.06 Goodyear
LEN.B 47.56 -0.79
GT 26.73 -0.15 Ingredion
INGR 127.53 -1.25 Lennar B
-0.92 Graco
GGG 44.60 -1.06 Intel
INTC 51.19 -1.29 LennoxIntl LII 201.82 -2.77
0.37 Grainger
GWW 273.03 -3.60 InteractiveBrkrs IBKR 66.70 -2.55 LeucadiaNatl LUK 22.15 -0.33
-1.25 GreatPlainsEner GXP 31.14 0.48 ICE
ICE 71.80 -1.20 LibertyBroadbandC LBRDK 83.84 0.08
-0.70 Grifols
GRFS 20.31 -0.21 InterContinentl IHG 60.95 -0.80 LibertyBroadbandA LBRDA 83.10 -0.18
-1.33 GrubHub
GRUB 103.34 -5.12 IBM
IBM 151.91 -1.46 LibertyGlobal C LBTYK 31.36 -0.89
1.19 GpoAvalAcc AVAL 8.26 -0.15 IntlFlavors IFF 135.40 -0.41 LibertyGlobal A LBTYA 32.36 -0.92
-0.30 GpoFinGalicia GGAL 65.41 0.75 IntlPaper
IP
52.13 -0.24 LibertyQVC B QRTEB 24.49 -1.51
-2.64 GrupoTelevisa TV 15.82 0.32 Interpublic IPG 22.75 0.02 LibertyQVC A QRTEA 24.99 -0.69
-0.70 Guidewire GWRE 79.97 -3.32 Intuit
INTU 173.25 -1.28 LibertyFormOne C FWONK 30.81 -0.43
-7.84 HCA Healthcare HCA 97.43 -0.55 IntuitiveSurgical ISRG
405.22 -9.90 LibertyFormOne A FWONA 29.01 -0.48
-8.26 HCP
HCP 22.79 0.48 InvitatHomes INVH 22.46 0.25 LibertyBraves A BATRA 23.16 -0.33
-2.08 HDFC Bank HDB 97.00 -0.78
IonisPharma IONS 45.80 -3.19 LibertyBraves C BATRK 23.27 -0.31
0.23 HD Supply HDS 37.43 -0.61
IronMountain IRM 31.90 0.63 LibertySirius C LSXMK 40.53 -0.91
-5.21 HP
HPQ 21.77 -0.43 IsraelChemicals ICL
4.20 -0.05 LibertySirius A LSXMA 40.65 -0.98
-1.61 HSBC
HSBC 47.61 -0.63 ItauUnibanco ITUB 15.05 -0.33 LibertyProperty LPT 39.22 -0.11
-0.52 Halliburton HAL 46.88 -0.33
EliLilly
LLY 75.66 -0.52
-0.57 Hanesbrands HBI 18.79
LincolnElectric LECO 89.44 -1.82
...
-0.13 HarleyDavidson HOG 42.02 -0.38
LincolnNational LNC 71.96 -1.15
-1.48 s
JD 40.71 -1.14 LiveNationEnt LYV 42.04 -1.27
Harris
HRS 160.35 -1.72 JD.com
-0.78
JPMorganChase JPM 108.17 -2.14 LloydsBanking LYG 3.68 -0.10
-3.26 HartfordFinl HIG 51.11 -0.37
JackHenry
JKHY 119.72 -1.16 LockheedMartin LMT 338.85 -5.08
HAS 84.07 -1.01
-0.67 t Hasbro
L
49.10 -1.02
HEI.A 71.85 -2.15 JacobsEngg JEC 56.23 -1.55 Loews
-0.14 Heico A
JamesHardie
JHX 17.61 0.07 LogitechIntl LOGI 36.42 -1.06
HEI 87.99 -2.57
-0.53 s Heico
LOGM 115.60 -4.20
-1.44 Helm&Payne HP 66.48 -1.24 JanusHenderson JHG 32.64 -0.61 LogMeIn
LOW 85.96 -3.34
-2.51 HenrySchein HSIC 65.08 -0.46 JazzPharma JAZZ 146.51 -4.52 Lowe's
LULU 78.71 -1.63
JBLU 19.95 -0.53 lululemon
HLF 96.37 -1.55 JetBlue
0.54 Herbalife
JNJ 127.21 -0.18 LyondellBasell LYB 104.14 -0.95
-1.00 Hershey
HSY 97.79 -0.23 J&J
-3.58 Hess
HES 49.87 -0.61 JohnsonControls JCI 34.32 -0.62
-0.32 HewlettPackard HPE 17.56 -0.43 JonesLang JLL 174.31 -0.05
-0.66 Hexcel
HXL 64.57 -1.63 JuniperNetworks JNPR 24.25 -0.35 M&T Bank MTB 180.33 -3.91
-0.56 Hilton
HLT 78.79 -1.19 KAR Auction KAR 53.25 -1.18 MGM Resorts MGM 34.86 -0.06
-0.01 HollyFrontier HFC 48.98 -0.38 KB Fin
KB 56.18 -0.34
MKS Instrum MKSI 114.85 -6.95
... Hologic
KKR 20.37 -0.33
HOLX 37.63 -0.04 KKR
MPLX
MPLX 32.95 -0.75
-1.25
HomeDepot HD 174.68 -1.70 KLA Tencor KLAC 107.81 -5.55 s MSCI
MSCI 154.04 -4.63
0.03
KT 13.37 0.06 Macerich
HondaMotor HMC 33.73 0.09 KT
MAC 55.50 -2.34
-1.29
-1.15 Honeywell HON 144.34 -2.60 KSCitySouthern KSU 106.99 -2.52 Macy's
M
27.86 -0.04
K
64.38 0.25 MadisonSquGarden MSG 243.60 -1.71
-0.58 HormelFoods HRL 33.57 0.16 Kellogg
KEY 19.27 -0.66 t MagellanMid MMP 57.08 -1.77
-0.50 DR Horton DHI 43.77 -0.91 KeyCorp
-0.51 HostHotels HST 18.33 -0.06 KeysightTechs KEYS 51.34 -0.85 MagnaIntl MGA 54.70 -0.70
0.13 HowardHughes HHC 136.23 -0.06 KilroyRealty KRC 69.98 0.16 Manpower MAN 113.02 -0.70
HuanengPower HNP 26.28 -0.52 KimberlyClark KMB 107.50 1.94 ManulifeFin MFC 18.35 -0.33
Hubbell
HUBB 119.55 -0.26 t KimcoRealty KIM 14.13 -0.06 MarathonOil MRO 15.82 -0.45
Humana
HUM 267.65 -0.45 KinderMorgan KMI 15.09 -0.04
Continued on Page B10
-1.13 JBHunt
JBHT 114.96 -5.22 Knight-Swift KNX 45.68 -1.47
ADVERTISEMENT
ANNOUNCEMENTS
Stock
BUSINESS OPPORTUNITIES
.
B10 | Wednesday, March 28, 2018
THE WALL STREET JOURNAL.
NY
MUTUAL FUNDS
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Fund
Tuesday, March 27, 2018
Net YTD
Net YTD
NAV Chg %Ret Fund
American Century Inv
44.36 -1.17
Ultra
American Funds Cl A
32.34 -0.66
AmcpA p
AMutlA p 39.32 -0.38
26.55 -0.19
BalA p
12.62 +0.05
BondA p
59.98 -0.26
CapIBA p
CapWGrA 50.63 -0.72
56.20 -0.68
EupacA p
61.18 -0.98
FdInvA p
50.74 -1.11
GwthA p
10.19
...
HI TrA p
39.33 -0.56
ICAA p
22.56 -0.10
IncoA p
43.78 -0.81
N PerA p
46.63 -1.18
NEcoA p
NwWrldA 67.33 -0.81
56.23 -0.72
SmCpA p
12.79
...
TxExA p
44.35 -0.59
WshA p
Baird Funds
2.7
-3.2
-1.9
-1.6
-3.7
-0.6
...
-1.4
2.4
-0.4
-2.3
-2.8
1.4
4.5
0.6
0.8
-1.3
-2.4
Net YTD
NAV Chg %Ret
NAV Chg %Ret Fund
AggBdInst
2.2 CorBdInst
10.61 +0.03
10.96 +0.03
BlackRock Funds A
GlblAlloc p 19.51 -0.15
BlackRock Funds Inst
22.18
...
EqtyDivd
19.63 -0.15
GlblAlloc
7.65 +0.01
HiYldBd
...
StratIncOpptyIns 9.92
Bridge Builder Trust
NA
...
CoreBond
Dimensional Fds
5GlbFxdInc 10.82 +0.02
EmgMktVa 31.68 -0.31
EmMktCorEq 23.41 -0.31
IntlCoreEq 14.23 -0.11
19.95 -0.18
IntlVal
21.04 -0.15
IntSmCo
22.32 -0.15
IntSmVa
US CoreEq1 22.40 -0.39
US CoreEq2 21.09 -0.37
34.98 -0.63
US Small
-1.8 US SmCpVal 36.58 -0.69 -3.5
-1.7 US TgdVal 24.00 -0.45 -3.6
37.75 -0.57 -3.5
USLgVa
-1.0 Dodge & Cox
Balanced 102.93 -1.03 -2.2
-2.6 GblStock
13.40 -0.19 -3.3
-0.9 Income
13.49 +0.04 -1.0
-0.7 Intl Stk
44.98 -0.45 -2.9
0.4 Stock
194.88 -3.46 -2.9
DoubleLine Funds
NA
NA
... NA
TotRetBdI
Edgewood Growth Instituti
-0.5
31.17 -0.78 5.4
EdgewoodGrInst
1.5
Federated Instl
0.8
-2.1 StraValDivIS 5.65 +0.02 -7.8
-2.6 Fidelity
-1.1 500IdxInst 91.72 -1.61 -1.9
-2.8 500IdxInstPrem 91.72 -1.61 -1.9
-1.7 500IdxPrem 91.72 -1.61 -1.9
-2.2 ExtMktIdxPrem r 61.47 -1.17 -0.9
-2.7 IntlIdxPrem r 42.20 -0.32 -2.3
Biggest 1,000 Stocks | WSJ.com/stocks
SAIUSLgCpIndxFd
TMktIdxF r
TMktIdxPrem
USBdIdxInstPrem
14.02 -0.25
75.09 -1.34
75.08 -1.34
11.32 +0.04
Fidelity Advisor I
NwInsghtI 31.85 -0.78
Fidelity Freedom
16.39 -0.13
FF2020
14.24 -0.13
FF2025
17.84 -0.21
FF2030
Freedom2020 K 16.37 -0.13
Freedom2025 K 14.22 -0.13
Freedom2030 K 17.82 -0.21
Freedom2035 K 15.03 -0.21
Freedom2040 K 10.55 -0.16
Fidelity Invest
23.59 -0.28
Balanc
89.66 -2.84
BluCh
123.12 -3.66
Contra
123.07 -3.66
ContraK
10.12 -0.06
CpInc r
38.92 -0.38
DivIntl
186.52 -6.59
GroCo
GrowCoK 186.53 -6.59
7.75 +0.03
InvGB
11.00 +0.04
InvGrBd
53.42 -0.62
LowP r
104.87 -2.50
MagIn
112.50 -4.12
OTC
23.19 -0.33
Puritn
SrsEmrgMkt 21.78 -0.45
SrsGroCoRetail 17.42 -0.61
SrsIntlGrw 15.98 -0.19
10.42 -0.07
SrsIntlVal
Stock
Net
Continued From Page B9
Net YTD
NAV Chg %Ret Fund
Fund
Top 250 mutual-funds listings for Nasdaq-published Data provided by
share classes with net assets of at least $500 million each.
O P Q
R S
1.6
-1.1
-1.1
-1.2
-1.1
-1.1
-1.2
-1.2
-1.3
-0.6
2.2
2.1
2.1
-0.9
-2.7
4.4
4.4
-1.6
-1.6
-2.0
0.3
2.4
-1.0
1.7
4.8
-1.1
-2.5
T U V
37.09
57.46
97.80
34.58
31.84
-0.30
-1.34
-1.16
0.11
-0.33
Stock
Net
Sym Close Chg
TIM Part
TSU 21.22 -0.38
TJX
TJX 80.44 -0.63
T-MobileUS TMUS 60.34 -1.05
TRowePrice TROW 106.10 -2.24
TableauSftwr DATA 81.50 -2.74
TaiwanSemi TSM 43.29 -0.98
TakeTwoSoftware TTWO 98.04 -5.06
s Tapestry
TPR 53.11 -0.13
TargaResources TRGP 45.46 -0.93
Target
TGT 68.51 -1.77
TataMotors TTM 25.63 0.23
TechnipFMC FTI 29.00 -0.97
TeckRscsB TECK 25.28 -0.56
TelecomArgentina TEO 31.10 -1.00
TelecomItalia TI
9.39 -0.21
TelecomItalia A TI.A 8.09 -0.20
TeledyneTech TDY 186.04 -3.97
Teleflex
TFX 257.65 -1.48
TelefonicaBras VIV 15.13 0.09
Telefonica TEF 9.65 -0.07
t TelekmIndonesia TLK 26.13 -0.31
Tenaris
TS 34.09 -0.46
Teradyne
TER 45.76 -1.94
Tesla
TSLA 279.18-25.00
TevaPharm TEVA 16.68 -0.19
TexasInstruments TXN 102.56 -4.04
Textron
TXT 57.45 -0.85
ThermoFisherSci TMO 206.62 -3.06
t ThomsonReuters TRI 38.53 -0.72
ThorIndustries THO 112.54 0.89
3M
MMM 215.87 -4.37
Tiffany
TIF 96.54 -1.25
TimeWarner TWX 94.20 0.21
Toll Bros
TOL 43.40 -0.83
Torchmark TMK 83.17 -0.95
Toro
TTC 60.42 -0.75
TorontoDomBk TD 56.27 -0.82
Total
TOT 56.56 -1.04
TotalSystem TSS 85.59 -2.02
ToyotaMotor TM 128.04 0.73
TractorSupply TSCO 59.44 -0.73
TransCanada TRP 40.74 0.26
TransDigm TDG 305.14 -4.25
TransUnion TRU 57.17 -0.87
Travelers
TRV 136.75 -1.47
Trimble
TRMB 34.97 -0.81
TripAdvisor TRIP 40.33 -1.61
TurkcellIletism TKC 9.30 -0.18
TurquoiseHill TRQ 3.25 0.02
21stCenturyFoxA FOXA 36.48 -0.55
21stCenturyFoxB FOX 36.08 -0.50
Twitter
TWTR 28.07 -3.84
TylerTech TYL 209.08 -1.23
TysonFoods TSN 74.03 0.09
UBS Group UBS 17.47 -0.15
UDR
UDR 34.70 0.25
UGI
UGI 43.61 0.37
US Foods USFD 33.29 -0.27
UltaBeauty ULTA 204.92 -2.98
UltSoftware ULTI 239.61 -9.06
t UltraparPart UGP 20.78 -0.17
UnderArmour A UAA 16.44 -0.23
UnderArmour C UA 14.32 -0.14
Unilever
UN 53.82 0.03
Unilever
UL 52.99 -0.05
UnionPacific UNP 131.30 -1.70
UnitedContinental UAL 68.18 -0.30
UnitedMicro UMC 2.57 -0.03
UPS B
UPS 102.17 -1.53
ADVERTISEMENT
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
BANKRUPTCIES
! " #$ #$ %% &' (%%) **+
*, -./' (%%) **+*0 ++ / 1 2 1
2 - . (/ ) 3 .
4 5* &' (3%) ,%+% -./' (3%) ,%+%%
) ,+%%:, (;99)
4 ' 6768 4 9 ) (2 /)
< =$.2 > 9. > #$ ( ?=$.2 @) ( ?= 9 8@) !"! #$%&'( )"& *( #+ , -./
( ? / = 9@) > . 2
(. " . A " )
/ > > / 2 > 9 (.."2
?"@ ?9@) .2 > = 9 8 2 !
" () "B ! C / $ ( . ./ . .) 2 .
,**+%0+%:, > . < 2 . *+
,3+%0* > . < () > .
2 " "B . 'DD./.$./D
." () > > " 6; 2 " 'DD.>2."
& = 9 8 C (.."2 ?/@)
./ / " -2 % %, ( ?//./ 9@) "
(?/@) / > > / .2 ." 2 /
$ ( ?. / @) > . (.."2 ?= 9@) > > . 2 2 "/ . 5%()
(0) > =$.2 "/ " , 2 >/
.//./ > . . / / " ( ?"/ = 9@)
&0%*' #"& #$% *1' )2)%$ *3 #4 5&(%)67#%)*( 1"0&' #$& 1"0&'
" 4. 533 ,+%%:,E / 9 4. 3, ,+%%:0E +
/ -. 9 4. 330 ,+%%,E / 4 +
4. :0* ,+%%,E / ". 4. :,0 ,+%%,%E
/ 1$ 4. :03 ,+%%,3E / 1$ 4.
35 ,+%%,*E / 4. :05 ,+%%,5E / <
4. %53 ,+%%,E /D8B> 1$ 4. 05* ,+%%,:E
91 1/ D ,+%%,,E " 61 4. 50 ,+%%,0E
" 61 5%3 ,+%%0E " 53* ,+%%0E
" 8//
D ,+%%0%E " ".
*3
,+%%03E 1F 4"/ 4. 5,%, ,+%%0*E 4. ,:, ,+%%05E //. 6" 1>. 4. %3
,+%%::E ;G 4. 30 ,+%%0E ;G 7 ::3 ,+%%0:E
9. 0,3* ,+%%0,E 6" . 0%:
,+%%00E 6! . 4. *::5 ,+%%%E /D/$
4. *5 ,+%%%E :5: ,+%%%%E 1+
D/ . 4 ". 4. :*0 ,+%%%3E 1+
D/ . 4. * ,+%%%*E ,+%%%5E 4 4. 30 ,+%%%E 8 &4 4. 3
,+%%%:E 2 4. *,5 ,+%%%,E ;G 7 4. *%
,+%%%0E ;G &.2 53 ,+%%%E 7 4.+
%*55 ,+%%%E 7<= /2 0: ,+%%%%
&(&'#8 8#)"$ #' #%& (. 53()(0) /) /
/ / / > > / .
. / #7%1#88+ '&7&)9&5 2 . / 2 #+ , -./ #% !"! '&9#)8)(2 #$%&'( )"& ( ? /
= 9@) . / . 53()(0)
> =$.2 1 8&"&(%#8 #' #%&! 4 " " / / . > (.."2 ?.@) " " . > 2 . // > 2 / >>. 2
. >> 35 2 >/ . .
. " / > > / . . / /
(2 . ?/ = 9@) >" >/ &:&7%)*( #' #%&! 4> 2 " / >/ A. > !.2 .. ! 2 / / > > / . A. > > () / = 9
H I+
. A. > . " 3 2 >/ >
2 > . ( ?;A. = 9@) " " . >
;A. = 9 .. .2 ..
A. / " A. 2 !.2 .. ! ;<&( #(5 ;<&'& * 10")%
6. > > / . ./ / +
/ . / > >
/ > . = 9 2 ' () ..2 >. " . / B 'DD
./.$./D." H +"2 2/ . > > / / . > ' " 4. / . .D / $ ,3 3 " 3 - #$ #$ %%
; ; !
*(%&(%$ *3 '**3$ *3 8#)"! 6. > > / /' () 6E () . / / / < E
() .>/ 2 > > / -/ " 2 "
!"H # $%&' >. " . / B 'DD
./.$./D." I
" > ./E (") . 2 " . ./ "/
. . //2 / . ! " 2 ./ " . > >
/ / / 2 9 & ! >
> / / 9 . / /2 " H
(
)" *" " " H (
*" " + 2 " 4.
&7%)*( 0 8#)"$! 7 > /2 C /" 2 / . 53()(0) > =$.2 ! 2 " 9 ." 2+2 //./ 9 & =$+
.2 / / > > > / >2 . C/ > . / . 53()(0)
> =$.2 4 C/ "
2 > > / 53()(0) / / () . " >
" ." 2 " % 2 /+
/./ 9E () . 2 ./ >2 .
". > . 53()(0) / E () . ./+
> 2 ./ / / " . 5*(.)
> =$.2 (> .)E (") > 2 " ,&-. + H
*($&=1&(7&$ *3 #)8)(2 %* )"&8+ 10")% *1' '**3 *3 8#)"! 2
/ C > / > > / ...
= 9 8 > . = 9 >"
A >/ . / "
( / > > / . ) 4 . " "B
2 >" . >/ 2 2
. . / . / " /
" I H
%% . 2 .. > . / ." >
. . /
&$&'9#%)*( *3 )2<%$! . . . " > 9B ' () >> > 2 / / 2 / J
0 " 1
2
3 "
6!.2 . <! / 2
H "' 4
. CE (.) / .
55)%)*(#8 (3*'"#%)*(! 4> 2 " 2 C ./
. D > 2 .2 > = 9 8 (.
. / . > C/ > / >
> ./) > > / >/ ./ 2 /2 2 "
"B . 'DD./.$./D." .. . / 2 . ,**+%0+%:, > . < 2 . *+,3+%0* > . < D > ' " 4.
/ . .D / $ ,3 3 " 3 - #$ #$ %% . / .
" 2 / 2 / > > /
5
" " )0 H &,--
9 / > "+. . . . . A2 / > . ./ > > > > !
H 1 " "+
/2 > "B ./ . 'DD./.$./D." & . > "B ".
> > . . ' ::: F. "
F #$ *
PUBLIC NOTICES
!"#$ !%&'()$ !$ *
+$ ) ! ), !-%,.! ).
&/.'%.!. ). .0 ' . ./'1. %% .'-%., ) % %, 11.%( ). /'.,, ). - &' %2&%!% %, .0 ' ') 3.$
&''. .! 4567 -.&. ). 1.'%,$ .0
'$ .0 ' 45589$ &!.' ). /'-%,%, .%
957:44# ). .0 ' . %( 0: */
1/ .% )%, - &' %2&%!% /'.,,$ ! 0% !& %, &,%.,, /.'%, '1
%, 3., % ). *%.! %(!1: ! /.',,
,..%( %'1% & ). ,&'. ). .0 '
') ! ' 0) !.,%'. 1. %1,
(%, ! '%,%( & ). /.'%
%, .0 ' ') ,)& ! ,&1% 0'%. '.2&.,,
' %'1% ' 0'%. %1, .-% : +.!'$
.%' '.'$ ') 1.'%$ ; !, $ 4567
-.&. ). 1.'%,$ .0 '$ .0 ' 45589<
. ./).= >4># 685?@6>5< .1% = .-%:1.!'A
&,:1$ ' /'%' /'% 85$ >54@:
LEGALNOTICES
ADVERTISE TODAY
(800) 366-3975
sales.legalnotices@wsj.com
For more information visit: wsj.com/classifieds
© 201 Dow Jones & Company, Inc.
All Rights Reserved.
Net YTD
NAV Chg %Ret Fund
10.43 +0.04 -1.4 Lazard Instl
First Eagle Funds
EmgMktEq 20.29 -0.31
57.87 -0.44 -2.0 Lord Abbett A
GlbA
FPA Funds
ShtDurIncmA p 4.21 +0.01
34.23 -0.32 -1.3 Lord Abbett F
FPACres
FrankTemp/Frank Adv
...
ShtDurIncm 4.20
IncomeAdv 2.25 -0.01 -3.4 Metropolitan West
FrankTemp/Franklin A
10.44 +0.03
TotRetBd
7.30 +0.01 -1.7 TotRetBdI
CA TF A p
10.44 +0.03
2.27 -0.01 -3.4 TRBdPlan
IncomeA p
9.82 +0.03
RisDv A p 58.90 -0.82 -3.7 MFS Funds Class I
FrankTemp/Franklin C
38.95 -0.60
ValueI
Income C t 2.30 -0.01 -3.5 MFS Funds Instl
FrankTemp/Temp A
24.82 -0.18
IntlEq
... 0.4 Mutual Series
GlBond A p 11.85
Growth A p 26.32 -0.27 -3.4 GlbDiscA
30.57 -0.29
FrankTemp/Temp Adv
Oakmark Funds Invest
GlBondAdv p 11.80 -0.01 0.3 EqtyInc r
31.40 -0.35
Harbor Funds
82.52 -1.58
Oakmark
CapApInst 71.99 -2.38 3.7 OakmrkInt 27.56 -0.33
66.08 -0.52 -2.1 Old Westbury Fds
IntlInst r
Harding Loevner
14.28 -0.20
LrgCpStr
NA
... NA Oppenheimer Y
IntlEq
Invesco Funds A
43.82 -0.71
DevMktY
10.62 -0.10 -2.8 IntGrowY
EqIncA
43.41 -0.30
John Hancock Class 1
Parnassus Fds
15.04 -0.12 -1.0 ParnEqFd
LSBalncd
41.99 -0.48
15.93 -0.19 -0.9 PIMCO Fds Instl
LSGwth
John Hancock Instl
NA
...
AllAsset
DispValMCI 22.93 -0.32 -1.6 TotRt
10.08 +0.03
JPMorgan Funds
PIMCO Funds A
MdCpVal L 38.94 -0.38 -3.3 IncomeFd
NA
...
JPMorgan R Class
PIMCO Funds Instl
11.36 +0.02 -1.3 IncomeFd
CoreBond
NA
...
Net
Sym Close Chg
TAL Education TAL
TD Ameritrade AMTD
TE Connectivity TEL
Telus
TU
Ternium
TX
Net YTD
NAV Chg %Ret Fund
TotalBond
Net s SS&C Tech SSNC 52.30 -0.90
SIVB 239.21-10.26
Chg SVB Fin
Sabre
SABR 21.41 -0.47
-0.29 SageTherap SAGE 154.55 -9.17
0.07 Salesforce.com CRM 113.81 -5.16
-0.27 Sanofi
SNY 39.34 -0.65
1.21 SantanderCons SC 15.91 -0.48
-3.82
Sasol
SSL 33.41 -0.10
-0.18
Schlumberger SLB 64.48 0.02
0.02
SchwabC
SCHW 51.53 -1.43
-2.26
Seagate
STX 57.37 -0.76
...
SealedAir SEE 42.17 0.07
-2.00
SeattleGenetics SGEN 51.20 -2.37
-0.44
SemicondctrMfg SMI 6.54 -0.14
1.38
SempraEnergy SRE 111.18 1.20
-0.56
SensataTech ST 50.49 -1.00
0.81
ServiceCorp SCI 37.43 -0.29
-9.91
ServiceMaster SERV 50.60 -0.45
-1.61
ServiceNow NOW 162.82 -8.63
-0.85
ShawComm B SJR 18.91 -0.04
0.89
1.49 SherwinWilliams SHW 390.72 -4.21
0.06 ShinhanFin SHG 41.95 0.18
SHPG 128.87 0.33
-0.67 Shire
SHOP 128.82 -7.90
-3.11 Shopify
SignatureBank
SBNY 141.75 -3.20
-1.29
-0.47 t SimonProperty SPG 150.46 -2.86
SiriusXM
SIRI 6.20 -0.12
SkechersUSA SKX 38.50 -0.29
Skyworks SWKS 101.52 -3.41
0.10 SmithAO
AOS 62.48 -1.75
-0.04 Smith&Nephew SNN 38.07 0.09
-0.62 Smucker
SJM 122.41 0.71
-0.19 Snap
SNAP 16.20 -0.05
-1.14 SnapOn
SNA 146.38 -2.47
-1.56 SOQUIMICH SQM 47.45 -0.35
-1.91 Sony
SNE 47.87 -0.80
-3.62 Southern
SO 44.53 0.71
0.37 SoCopper
SCCO 53.38 -0.63
1.33 SouthwestAir LUV 56.69 -0.90
0.47 SpectraEnerPtrs SEP 32.61 -0.48
-1.47 SpiritAeroSys SPR 83.37 -2.03
-0.51 Splunk
SPLK 99.79 -5.09
-5.20 t Sprint
S
4.89 -0.12
-0.64 Square
SQ 51.06 -2.49
-0.68 StanleyBlackDck SWK 152.40 -4.08
-0.99 Starbucks SBUX 57.46 -0.34
-0.89 StateStreet STT 98.96 -2.49
-0.76 Statoil
STO 23.59 -0.24
-0.47 SteelDynamics STLD 43.03 -0.51
-3.84 STMicroelec STM 22.85 -0.72
-0.10 Stryker
SYK 158.54 -1.86
0.13 SumitomoMits SMFG 8.53 -0.03
-1.20 SunComms SUI 90.56 1.47
-5.11 SunLifeFinancial SLF 40.82 -0.61
-0.40 SuncorEnergy SU 34.43 0.15
-0.99 SunTrustBanks STI 66.69 -1.73
-0.22 Symantec SYMC 25.51 -0.70
-1.62 SynchronyFin SYF 32.67 -0.63
-0.11 Synopsys
SNPS 82.89 -1.33
-0.16 SynovusFin SNV 48.63 -1.07
-0.53 Sysco
SYY 59.36 -0.60
Sym Close Chg Stock
Sym Close
Net Stock
Sym Close Chg s NextEraEnergy NEE 162.59 1.16 Phillips66 PSX 95.71
NKE 66.17 0.27 PilgrimPride PPC 24.86
s MarathonPetrol MPC 72.88 -0.80 Nike
NI
23.79 0.40 PinnacleFoods PF 53.97
Markel
MKL 1149.04 -3.96 NiSource
MarketAxess MKTX 217.28 -4.43 NobleEnergy NBL 30.21 -0.22 PinnacleWest PNW 79.37
Nokia
NOK
5.44 -0.10 PioneerNatRscs PXD 171.75
Marriott
MAR 135.59 -3.33
Marsh&McLen MMC 81.39 -0.70 NomuraHoldings NMR 5.73 -0.04 PlainsAllAmPipe PAA 21.61
PAGP 21.59
Nordson
NDSN
134.65
-2.80 PlainsGP
MartinMarietta MLM 205.43 -3.86
MarvellTech MRVL 21.39 -0.82 Nordstrom JWN 47.37 0.24 PolarisIndustries PII 112.78
Pool
POOL 143.50
NorfolkSouthern
NSC
133.59
-2.60
Masco
MAS 40.47 -0.34
PX 144.11
Mastercard MA 172.52 -4.65 NorthernTrust NTRS 101.58 -2.22 Praxair
PrincipalFin
PFG
58.79
NorthropGrum
NOC
349.29
-5.94
s MatchGroup MTCH 44.23 -2.23
MaximIntProducts MXIM 59.41 -1.59 NorwegCruise NCLH 52.87 0.43 Procter&Gamble PG 77.79
Progressive
PGR
60.29
Novartis
NVS
79.45
-0.23
McCormick MKC107.35 0.38
PLD 62.04
McCormickVtg MKC.V 106.90 1.23 NovoNordisk NVO 48.56 -1.00 Prologis
NUE 60.23 -0.37 Proofpoint PFPT 112.06
McDonalds MCD 157.48 -0.53 Nucor
NTNX 47.36 -4.53 PrudentialFin PRU 102.56
McKesson MCK 138.75 -0.54 Nutanix
NTR 47.21 0.04 Prudential PUK 51.11
Medtronic MDT 78.16 -0.30 Nutrien
NVDA 225.52-18.96 PublicServiceEnt PEG 49.32
MelcoResorts MLCO 28.71 0.49 NVIDIA
PublicStorage PSA 198.10
MercadoLibre MELI352.21 -1.19
PulteGroup PHM 29.23
Merck
MRK 53.75 -0.29
Qiagen
QGEN 32.20
MetLife
MET 45.49 -0.66
OGE
Energy
OGE
32.26 0.45 Qorvo
QRVO 70.23
MettlerToledo MTD 573.21-15.54
OKE 56.96 -0.06 Qualcomm QCOM 54.84
MichaelKors KORS 61.51 -1.21 ONEOK
OReillyAuto
ORLY
238.97
-6.43
QuestDiag
DGX
99.95
MicroFocus MFGP 13.72 0.39
MicrochipTech MCHP 94.40 -3.59 OccidentalPetrol OXY 65.82 -1.38
OldDomFreight
ODFL
142.75 -4.90
MicronTech MU 52.40 -3.16
Microsemi MSCC 65.51 -0.33 OldRepublic ORI 21.11 -0.04 RELX
RENX 20.44
Microsoft MSFT 89.47 -4.31 Omnicom OMC 72.72 0.96 RELX
RELX 20.56
ON 24.96 -1.16
MidAmApt MAA 88.20 0.35 ON Semi
RPM
RPM
47.30
Middleby
MIDD 122.73 -0.62 OpenText OTEX 34.06 -0.58 RSP Permian RSPP 38.92
ORCL 45.38 -1.10
MitsubishiUFJ MTU 6.60 -0.03 Oracle
RalphLauren
RL
109.59
ORAN 16.86 -0.09
MizuhoFin MFG 3.66 -0.02 Orange
RandgoldRscs GOLD 83.66
MobileTeleSys MBT 11.10 -0.23 OrbitalATK OA 132.61 0.02 RaymondJames RJF 87.65
IX
88.22 -0.06
MohawkInds MHK 227.90 -6.30 Orix
Raytheon RTN 215.11
Oshkosh
OSK
77.05
-1.63
MolsonCoors B TAP 74.23 0.32
RealtyIncome O
50.32
Momo
MOMO 36.02 -2.84 OwensCorning OC 80.47 -0.49 s RedHat
RHT 154.42
PG&E
PCG
43.94
1.07
Mondelez MDLZ 40.91 -0.42
RegencyCtrs REG 57.09
PHI 27.18 -0.60
Monsanto MON 117.58 -0.11 PLDT
RegenPharm REGN 329.24
PNC 149.18 -3.83
MonsterBev MNST 56.25 -0.62 PNC Fin
RegionsFin RF 18.29
PKX 77.80 1.53 ReinsGrp
Moody's
MCO 159.54 -3.76 POSCO
RGA 153.50
PPG
Ind
PPG
111.91
-0.02
MorganStanley MS 53.15 -1.15
RelianceSteel RS 84.26
PPL 27.90 0.45 RepublicSvcs RSG 65.94
Mosaic
MOS 24.20 -0.45 PPL
PTC
PTC
78.79
-1.06
MotorolaSol MSI 105.93 0.14
ResMed
RMD 97.28
PVH 143.16 -2.09 RestaurantBrands QSR 56.57
MuleSoft
MULE 43.79 -0.32 PVH
PCAR 63.88 -1.14 RioTinto
Mylan
MYL 39.53 -0.33 Paccar
RIO 50.69
NICE
NICE 91.79 -2.35 PackagingCpAm PKG 112.32 -2.02 RobertHalf RHI 56.41
s NRG Energy NRG 30.00 -0.37 PacWestBancorp PACW 48.52 -1.03 Rockwell
ROK 173.21
NTTDoCoMo DCM 25.60 -0.03 s PagSeguroDig PAGS 37.46 -0.14 RockwellCollins COL 135.97
NVR
NVR 3028.13-40.84 PaloAltoNtwks PANW 179.44 -8.01 RogersComm B RCI 43.96
NXP Semi NXPI 121.52 -0.09 ParkerHannifin PH 170.36 -4.26 Rollins
ROL 50.42
Nasdaq
NDAQ 81.92 -1.58 ParsleyEnergy PE 26.94 -1.56 RoperTech ROP 277.41
PAYX 59.84 -1.38 RossStores ROST 76.92
NationalGrid NGG 54.65 0.45 Paychex
NatlInstruments NATI 49.72 -1.57 s PaycomSoftware PAYC 107.62 -6.24 RoyalBkCanada RY 76.66
PYPL 76.31 -2.64 RoyalBkScotland RBS 7.30
NatlOilwell NOV 36.92 -0.98 PayPal
PSO 10.63 -0.16 RoyalCaribbean RCL 118.30
NatlRetailProp NNN 37.94 0.38 Pearson
NektarTherap NKTR 104.51 -2.52 PembinaPipeline PBA 30.88 0.01 RoyalDutchA RDS.A 64.07
PNR 68.28 -0.89 RoyalDutchB RDS.B 65.64
NetApp
NTAP 61.19 -2.11 Pentair
Netease
NTES 280.76-16.62 People'sUtdFin PBCT 18.29 -0.40 Ryanair
RYAAY 122.27
PEP 107.64 0.83 SAP
SAP 103.03 -1.80
Netflix
NFLX 300.69-19.66 PepsiCo
Neurocrine NBIX 81.28 -1.78 PerkinElmer PKI 75.52 -0.76 S&P Global SPGI 187.87 -3.41
PRGO 81.93 0.03 SBA Comm SBAC 170.10 -3.33
NewOrientalEduc EDU 87.73 -4.05 Perrigo
NY CmntyBcp NYCB 12.87 -0.42 PetroChina PTR 68.95 -1.35 SEI Investments SEIC 73.39 -1.73
NewellBrands NWL 25.19 -0.87 PetroleoBrasil PBR 13.96 -0.51 Sina
SINA 104.31 -5.96
NewmontMin NEM 39.03 -0.86 PetroleoBrasilA PBR.A 12.88 -0.51 SINOPEC
SHI 60.26 -1.01
PFE 35.01 -0.03 SK Telecom SKM 23.26 -0.07
NewsCorp A NWSA 15.58 -0.10 Pfizer
NewsCorp B NWS 15.95 -0.15 PhilipMorris PM 96.73 0.38 SLGreenRealty SLG 94.96 0.52
Stock
-1.8
-1.7
-1.7
-1.7
1.3 IncomeP
NA
...
Price Funds
-0.1 BlChip
101.05 -2.92
28.24 -0.18
CapApp
-0.3 EqInc
32.08 -0.46
70.08 -1.51
EqIndex
-1.6 Growth
64.62 -1.74
-1.5 HelSci
70.50 -1.53
-1.5 InstlCapG
38.51 -1.06
18.42 -0.19
IntlStk
-4.2 IntlValEq
14.77 -0.12
90.04 -1.36
MCapGro
-2.5 MCapVal
29.88 -0.25
55.20 -1.32
N Horiz
-3.9 N Inc
9.27 +0.03
OverS SF r 11.14 -0.11
-2.5 R2020
NA
...
-2.1 R2025
NA
...
-3.5 R2030
NA
...
NA
...
R2035
-1.2 R2040
NA
...
36.17 -0.49
Value
2.0 PRIMECAP Odyssey Fds
-0.5 AggGrowth r 49.26 -1.42
39.93 -1.00
Growth r
-1.6 Principal Investors
DivIntlInst 13.62 -0.15
NA Prudential Cl Z & I
-1.3 TRBdZ
14.22 +0.04
Schwab Funds
NA S&P Sel
40.43 -0.71
TIAA/CREF Funds
NA EqIdxInst
19.31 -0.34
Net
Sym Close Chg
Stock
UnitedRentals URI 177.15
US Bancorp USB 49.86
US Steel
X
33.67
UnitedTech UTX 125.28
UnitedHealth UNH 217.96
UniversalHealthB UHS 120.44
UnumGroup UNM 47.47
VEREIT
VER 6.84
VF
VFC 73.73
VICI Prop VICI 18.48
Visa
V
117.40
VailResorts MTN 222.83
Vale
VALE 12.23
ValeroEnergy VLO 92.27
VarianMed VAR 121.84
Vedanta
VEDL 17.56
VeevaSystems VEEV 72.81
Ventas
VTR 49.01
VeriSign
VRSN 117.48
Net YTD
NAV Chg %Ret Fund
PIMCO Funds P
NA
4.9
-0.1
-3.4
-1.9
3.1
0.2
4.3
-1.3
-2.3
3.5
-1.7
5.0
-1.7
-1.5
NA
NA
NA
NA
NA
-3.1
11.1
7.2
-2.0
-1.8
-1.8
-1.7
Net
Sym Close Chg
Stock
-3.42 VeriskAnalytics VRSK 101.66 -1.93
-1.43 Verizon
VZ 47.31 0.24
-1.73 VertxPharm VRTX 160.34 -5.76
-1.36 Viacom A VIA 38.90 0.55
-1.11 Viacom B VIAB 30.73 0.64
0.21 Vipshop
VIPS 16.83 -1.17
-0.77 s VirtuFinancial VIRT 33.70 0.90
0.12 VistraEnergy VST 20.86 0.15
-0.90 VMware
VMW 123.37 -2.66
-0.18 Vodafone
VOD 27.59 -0.26
-3.24 t VornadoRealty VNO 65.96 0.80
-4.07 VoyaFinancial VOYA 49.89 -0.69
-0.46 VulcanMatls VMC 114.73 -1.97
-1.98
-1.47
-0.18
WBC 132.03 -3.19
-2.75 WABCO
0.80 WEC Energy WEC 62.30 1.15
WEX 152.90 -2.07
-3.99 WEX
W X Y Z
Net YTD
NAV Chg %Ret Fund
Net
Sym Close Chg
Stock
W.P.Carey WPC 61.87 0.53
WPP
WPP 78.55 -0.12
Wabtec
WAB 80.71 0.10
WalgreensBoots WBA 65.96 -1.51
Walmart
WMT 86.05 -1.45
WasteConnections WCN 71.14 -1.25
WasteMgt WM 83.29 -0.84
Waters
WAT 200.52 -3.68
Watsco
WSO 175.46 -2.32
Wayfair
W 66.54 -1.47
Weibo
WB 118.23-10.55
WellCareHealth WCG 190.45 -1.35
WellsFargo WFC 51.10 -1.19
Welltower WELL 53.28 1.14
WestPharmSvcs WST 86.27 -1.13
WestarEnergy WR 51.69 0.96
WestAllianceBcp WAL 56.87 -1.08
WesternDigital WDC 92.18 -2.09
Dividend Changes
Company
Dividend announcements from March 27.
Foreign
Company
Symbol
Amount
Yld % New/Old Frq
ACNB
CMCO
NBTB
3.2
0.6
2.8
.23 /.20
.05 /.04
.25 /.23
4.0
.01401
.50
Q
Q
Q
Jun15 /Jun01
May14 /May04
Jun15 /Jun01
BVNSC
GDLpC
-2.2
-0.8
-1.2
-1.3
-1.4
-1.4
-1.5
-1.6
-1.6
-1.2
-1.5
-1.3
-1.3
-5.3
-0.9
-0.7
-1.0
-1.2
-1.4
-1.4
-1.4
-1.5
-1.6
-1.5
-0.9
0.8
Symbol
BBVA
NAP
PTR
PTR
SHI
VIV
Net YTD
NAV Chg %Ret
WellsI
Welltn
WndsrII
25.98
...
40.64 -0.30
36.28 -0.51
VANGUARD INDEX FDS
241.15 -4.24
500
ExtndIstPl 206.59 -3.87
SmValAdml 54.78 -0.76
10.47 +0.04
TotBd2
17.91 -0.17
TotIntl
65.30 -1.16
TotSt
VANGUARD INSTL FDS
33.99 -0.31
BalInst
DevMktsIndInst 14.03 -0.10
DevMktsInxInst 21.93 -0.16
83.71 -1.57
ExtndInst
GrwthInst 72.28 -1.74
10.28 +0.04
InPrSeIn
238.00 -4.19
InstIdx
238.02 -4.18
InstPlus
InstTStPlus 58.07 -1.03
MidCpInst 41.78 -0.60
MidCpIstPl 206.06 -2.94
SmCapInst 69.49 -1.19
SmCapIstPl 200.58 -3.45
STIGradeInst 10.50 +0.01
10.50 +0.03
TotBdInst
TotBdInst2 10.47 +0.04
TotBdInstPl 10.50 +0.03
TotIntBdIdxInst 32.76 +0.06
TotIntlInstIdx r119.79 -1.11
TotItlInstPlId r119.81 -1.11
65.33 -1.16
TotStInst
39.77 -0.49
ValueInst
Western Asset
...
CorePlusBdI NA
-0.37
-0.85
-0.32
-0.97
-0.44
-0.38
0.37
-0.17
-0.64
-0.30
-0.75
-2.76
-0.10
-0.89
-5.30
-0.78
-1.48
0.73
-1.9
-0.9
-3.5
-1.7
-1.6
-1.7
-1.6
-2.4
-2.4
-0.9
0.1
-1.1
-1.9
-1.8
-1.7
-1.0
-0.9
-1.5
-1.5
-0.6
-1.7
-1.7
-1.7
0.8
-1.6
-1.6
-1.7
-3.4
NA
Net
Sym Close Chg
Stock
XPO Logistics XPO 98.66 -3.39
XcelEnergy XEL 45.11 0.97
Xerox
XRX 29.00 -0.40
Xilinx
XLNX 72.08 -2.12
Xylem
XYL 76.32 -1.56
YPF
YPF 21.51 -0.41
YY
YY 103.24-13.96
Yandex
YNDX 39.73 -1.75
YumBrands YUM 83.88 -0.15
YumChina YUMC 40.76 -0.52
ZTO Express ZTO 14.71 -0.32
ZayoGroup ZAYO 33.55 -0.03
ZebraTech ZBRA 135.46 -4.94
Zillow A
ZG 53.84 -2.04
Zillow C
Z
53.70 -2.10
ZimmerBiomet ZBH 108.48 -1.28
ZionsBancorp ZION 52.02 -1.22
Zoetis
ZTS 81.86 -1.87
Amount
Yld % New/Old Frq
49.6
1.1
1.1
7.9
-3.0
-2.8
-4.1
.18659
Q
.50
.56938
.39531 SA
4.7647 A
.40396
Payable /
Record
Apr25 /Apr09
May11 /May09
Aug06 /Jun13
Aug06 /Jun13
Jul23 /Jun19
/Apr16
Special
CKX Lands
Initial
Brandes Value NextShares
GDL Fund Pfd. C
-1.7
-2.4
-3.4
-4.1
-3.0
-2.7
-1.5
Net
Sym Close Chg
Stock
t WesternGasEquity WGP 32.90
t WesternGasPtrs WES 41.50
WesternUnion WU 18.89
WestlakeChem WLK 113.34
t WestpacBanking WBK 21.92
WestRock WRK 63.45
Weyerhaeuser WY 34.90
WheatonPrecMet WPM 20.30
t Whirlpool WHR 152.80
Williams
WMB 25.15
WilliamsPartners WPZ 34.73
WillisTowers WLTW 151.38
Wipro
WIT 5.12
WooriBank WF 41.24
Workday
WDAY 126.44
Worldpay WP 81.66
Wyndham WYN 112.93
WynnResorts WYNN 177.73
Banco Bilbao Vizcaya ADR
Navios Maritime Midstream
PetroChina ADR
PetroChina ADR
SINOPEC Shanghai ADR
Telefonica Brasil ADR
Payable /
Record
Increased
ACNB
Columbus McKinnon
NBT Bancorp
Net YTD
NAV Chg %Ret Fund
IntlEqIdxInst 19.74 -0.15 -2.1 TotStAdml 65.32 -1.16
Tweedy Browne Fds
14.01 -0.10
TxMIn r
27.81 +0.20 -2.4 ValAdml
GblValue
39.77 -0.49
VANGUARD ADMIRAL
WdsrllAdml 64.37 -0.91
500Adml 241.15 -4.24 -1.9 WellsIAdml 62.93
...
33.98 -0.31 -1.6 WelltnAdml 70.18 -0.52
BalAdml
... -1.2 WndsrAdml 77.81 -1.11
CAITAdml 11.57
CapOpAdml r154.76 -4.06 0.7 VANGUARD FDS
38.73 -0.60 1.6 DivdGro
EMAdmr
25.96 -0.25
EqIncAdml 74.63 -0.75 -3.8 HlthCare r 203.94 -1.86
ExplrAdml 91.29 -1.90 3.3 INSTTRF2020 22.26 -0.14
ExtndAdml 83.72 -1.57 -0.9 INSTTRF2025 22.56 -0.18
GNMAAdml 10.25 +0.02 -1.3 INSTTRF2030 22.80 -0.21
GrwthAdml 72.28 -1.73 0.1 INSTTRF2035 23.04 -0.24
HlthCareAdml r 86.02 -0.78 -0.8 INSTTRF2040 23.27 -0.27
HYCorAdml r 5.76 +0.01 -1.5 INSTTRF2045 23.43 -0.29
25.25 +0.10 -1.1
InfProAd
39.24 -0.30
IntlVal
IntlGrAdml 98.21 -1.67 2.8
19.66 -0.07
LifeCon
ITBondAdml 11.05 +0.05 -2.1
33.18 -0.36
ITIGradeAdml 9.48 +0.03 -2.1 LifeGro
26.79 -0.20
LifeMod
LTGradeAdml 10.01 +0.08 -5.1
26.56 -0.55
PrmcpCor
MidCpAdml 189.14 -2.70 -0.9
29.60 -0.42
... -1.2 SelValu r
MuHYAdml 11.20
26.56 -0.25
STAR
MuIntAdml 13.87 +0.01 -1.2
10.50 +0.01
... -1.6 STIGrade
MuLTAdml 11.39
... -0.2 TgtRe2015 15.17 -0.06
MuLtdAdml 10.82
31.01 -0.19
TgtRe2020
... 0.3
MuShtAdml 15.70
PrmcpAdml r134.15 -3.33 0.4 TgtRe2025 18.25 -0.14
33.17 -0.30
TgtRe2030
RealEstatAdml104.47 +0.35-10.3
SmCapAdml 69.49 -1.20 -1.5 TgtRe2035 20.39 -0.21
STBondAdml 10.28 +0.02 -0.5 TgtRe2040 35.23 -0.42
STIGradeAdml 10.50 +0.01 -0.6 TgtRe2045 22.15 -0.27
TotBdAdml 10.50 +0.03 -1.7 TgtRe2050 35.64 -0.45
13.39 -0.03
TotIntBdIdxAdm 21.83 +0.04 0.8 TgtRetInc
TotIntlAdmIdx r 29.96 -0.27 -1.6 TotIntBdIxInv 10.92 +0.02
.12
CKX
Apr12 /Apr05
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
Mar29 /Mar28
Jun26 /Jun19
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Tuesday, March 27, 2018
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShEdgeMSCIUSAMom
iShFloatingRateBd
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazil
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
MTUM
FLOT
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
9.24
101.12
51.56
67.33
27.15
98.35
80.36
73.47
107.01
103.79
120.54
64.85
57.45
62.15
262.32
184.66
76.19
59.77
106.88
94.14
72.76
51.28
104.86
50.95
12.91
116.55
85.39
111.93
104.47
70.70
43.35
–1.07 –14.4
2.5
–1.96
–0.06 –9.4
–0.94 –6.8
–1.95 –2.7
–1.19 –2.7
–1.18 –2.8
–1.38 –2.9
0.25 –2.0
0.05 –0.7
0.30 –1.3
–0.77 –1.9
1.0
–1.74
–1.05 –1.5
–1.75 –2.4
–1.53 –2.7
–1.69 –0.8
–1.77 –2.2
0.29 –2.2
–0.10 –4.5
–0.45 –0.3
–0.83 –2.8
1.7
–2.67
0.2
0.05
3.2
–0.62
0.36 –4.1
–0.09 –2.1
0.15 –3.6
0.22 –2.0
–1.44 –1.9
7.2
–2.65
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShShortTreaBd
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS Div
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
SHV
TIP
SHY
IEF
IWP
MINT
QQQ
BKLN
JNK
GLD
SCHF
SCHB
SCHD
Closing Chg YTD
Symbol Price (%) (%)
ETF
68.65
64.52
47.53
42.75
59.25
105.12
108.75
134.69
145.18
118.52
189.05
150.36
120.42
154.61
204.03
85.24
215.63
153.50
107.99
37.40
110.33
112.81
83.52
103.00
121.84
101.57
159.08
23.10
35.79
127.49
33.15
63.12
48.25
–0.74
–0.60
–1.82
–1.18
0.24
–2.77
0.23
–2.31
–1.73
–1.07
–2.21
–1.94
–1.57
–1.72
–1.35
–0.99
–1.71
–2.41
–0.97
–0.08
0.03
0.38
0.07
0.57
–1.84
0.03
–3.24
0.04
–0.14
–0.62
–0.87
–1.74
–1.01
–2.4
0.0
0.9
–1.5
–1.1
–1.5
–1.8
0.0
–2.3
–4.7
1.3
–1.4
–4.2
–2.3
–2.0
–4.4
–0.1
0.5
–5.5
–1.8
0.1
–1.1
–0.4
–2.4
1.0
0.0
2.1
0.3
–2.5
3.1
–2.7
–2.2
–5.7
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdRealEst
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrJapanHdg
SCHX
DIA
MDY
SPY
SDY
XLK
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
DXJ
62.39
238.29
336.38
260.60
89.83
64.58
21.99
169.09
127.54
162.19
99.72
43.56
46.46
57.38
68.40
53.59
140.38
151.73
81.44
81.61
84.51
119.84
152.74
108.16
73.71
239.31
78.43
78.32
145.06
79.74
54.67
55.73
134.19
72.76
101.94
54.20
–1.73 –2.2
–1.46 –3.7
–1.50 –2.6
–1.70 –2.3
–0.56 –4.9
1.0
–3.21
–2.01 –5.4
2.6
–3.39
–1.38 –3.9
0.8
–2.10
–1.38 –2.3
–0.82 –2.9
1.2
–1.48
–1.19 –3.0
–1.91 –2.3
–1.05 –2.1
–2.39 –0.2
–1.39 –1.6
–1.13 –4.9
0.44 –2.6
0.42 –3.3
–1.78 –2.2
–1.40 –1.3
–1.00 –3.1
0.38 –11.2
–1.73 –2.4
0.17 –0.8
0.14 –1.2
–1.69 –1.9
0.34 –2.2
0.6
0.18
–1.08 –1.9
–1.77 –2.2
–1.33 –2.0
–1.26 –4.1
0.24 –8.6
ADVERTISEMENT
Career Opportunities
To advertise: 800-366-3975 or WSJ.com/classifieds
CAREERS
CAREERS
" !" 1- $ %
!"
-
' "
!"
&
(A* ,
"
!"
(-
% %* <
4
" 1
+ -
$ -" "
&
(A* ,
" 4
" % <
. &
!"
+ "
& " + " ""
"
0% + . -
%
-
(@: 8 * 77 00
<
" . " !"
!" "
" . " -
% &
" . "/
-
& 6
" = #
" F0% - #
. "
+"
" 7,
" 31. "/ "+
. 0
4
4
. 0%% " + <
A < %$ $+$2
& + 98:;@C$
!"
#
$ %
!"
&
' "
"
!"
()* +
,
" "$
-" "
()* +
,
" . " +
. " "
/ . "/ " +
& 0
-
& &. ,
" ""
+
"
"
" . #
. & &&
+
"
+
"/
& " " /. " "
& " " +
, !"
. "/ 1231 4
4
0-
+
- 5
+
& 6
7, 8
8
-
"
" 7
-
8
0 ""
0 ""
1
$ $+$2
& + 98:;:)$
<= 7, 4
- > $ 11 <= 7, 4
+
<= 6 2 <,
0
$ && 0
%
> "
" " > +"$
' $ > "
> ""
,
"
> & + $ %
!' &
'
7' <' 7 "
> ) , ) , 4
"$ %
!'
) , 2? . > &
<=
64 (+& > ,* +
>
< > +& 7- > 8:@ "
> "
. '. " . +
.
7,
. 2$ ,
> " & <7
& > "+
#
. & > . > & > & &
$ ,
. ". . > " $ %
!' A ,
" <= $ $
%
!' : , 2? <= > 4& %
"
$ 5 " , " <= +" $ 4 &?22$
$2+"2
2
&$& > A:@BCCD
EF+ "+
G > E
& #+$G $ 767
" 0
"
? 8
11 6 , ;C:HI < DI:;C
? $ F&$ #+ J +
?
" (
* "
" $ 7, 0? 4
&.
. 7
. %<. . . > ,
!". +" > +
. & > "+. 2 " > .
> & > . .
5
+
& . 5
+
> . 2 > &
- . 6
> . " . > + $
CAREERS
"
4
"
" & "
+ &
"
$ %
!"
-
' "
"
7
!"
" (I* ,
+"
"
&
4
"
-
1"
(-1* "
" +
&
$ -" "
" (I* ,
&
/ "
+"
!"
. &
. ,
" 4 . . &
"/ 31
. & &". + /
. +
& . +"
!"
" "
.
"/ /
4
"
. &
<,
0
7!" 7, .
"
+ " "&
" 7 " %
" <
< K %
"$ $+$2
& + %@@@)$
$ 5 +
"
> +
+ ,
" "
$ %
!"
> " " > +
$ -
' !"
L ; ,. 6% &
' !" L
) ,$ , 23124
92! $
5
+ , 2+
0& 8
$ 7, 2
&$ 7, 2+"$ $$ 4+
"$ 7, 324
$ 7, 7,
> $ 7, #
2F $ 7
" ' , 2
!' $ !'$ 4 &?22
$
#&
$ > #+ J
:H@@;HDI@$ 767 7 -2<22$ F$$ -
&
F- &
> $ 4&
&
-& "+
F$$ - &
> $ M ;@@A F$$
- &
> $ & $
$#&
$
OPIC Loan Syndications
seeks Senior Banker with minimum 10 years of
project finance, transactional, credit, syndications
and credit asset sales experience. Strong network
within the institutional investment community is
highly desirable. OPIC is the Development Finance
Institution of the US Government. Must be a US
Citizen. Appointment is up to 4 years.
For additional information and how to apply
please go to: https://goo.gl/yCEZUX
Phelps County Regional Medical Center
in Rolla MO is looking for
Multiple Hospitalist positions.
Send CV to Beth Hedrick
ehedrick@pcrmc.com
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | B11
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
23857.71 t 344.89, or 1.43%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 25.20 21.12
P/E estimate *
16.20 17.72
Dividend yield
2.24
2.35
All-time high 26616.71, 01/26/18
Nasdaq Composite Index
Last
2612.62 t 45.93, or 1.73%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio * 24.91 24.52
P/E estimate *
16.92 18.27
Dividend yield
1.93
1.97
All-time high 2872.87, 01/26/18
Last Year ago
7008.81 t 211.74, or 2.93%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 25.75
25.97
P/E estimate *
20.02
20.34
Dividend yield
1.01
1.12
All-time high: 7588.32, 03/12/18
Session high
Current divisor 0.14523396877348
UP
Close
t
DOWN
Session open
2900
7500
26000
2825
7300
25200
2750
7100
24400
2675
6900
23600
2600
Open
t
Close
26800
Session low
65-day moving average
65-day moving average
65-day moving average
22800
6700
6500
2525
Bars measure the point change from session's open
2450
22000
Dec.
Jan.
Feb.
Dec.
Mar.
Jan.
Feb.
Mar.
6300
Dec.
Jan.
Feb.
Mar.
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
YTD 3-yr. ann.
Dow Jones
24446.22 23708.73 23857.71 -344.89
-1.43
26616.71 20404.49
15.2
-3.5
Transportation Avg 10445.13 10136.80 10181.42 -191.79
-1.85
11373.38
8783.74
11.9
-4.1
5.4
774.47
647.90
-1.9
-4.7
5.9
29630.47 24125.20
757.37
610.89
10.9
12.9
-2.1
-1.1
7.8
7.6
Industrial Average
696.80
Utility Average
Total Stock Market
Barron's 400
678.57
1.41
9.56
689.73
-1.75
27717.94 26942.60 27094.15 -483.00
718.60
699.85
702.77 -12.76
Nasdaq Stock Market
Nasdaq Composite
7255.54
Nasdaq 100
6793.50
-1.78
7008.81 -211.74 -2.93
6529.84 -223.99 -3.32
6963.68
6479.56
7588.32
7131.12
5805.15
5353.59
10.4
1.5
2.1
19.3
20.8
2674.78
2596.12
2612.62 -45.93
-1.73
2872.87
2328.95
10.8
-2.3
8.2
MidCap 400
SmallCap 600
1884.70
946.34
1844.24
924.90
1851.75 -27.71
927.86 -15.89
-1.47
-1.68
1995.23
979.57
1681.04
815.62
8.6
11.4
-2.6
-0.9
7.1
9.1
Other Indexes
Russell 2000
1547.71
1508.94
1513.57 -30.15
-1.95
1610.71
1345.24
10.7
-1.4
6.9
13637.02 11324.53
7.0
-4.0
4.2
4.9
-3.9
2.1
NYSE Composite
550.47
Value Line
538.73
540.66
-1.46
-8.01
589.69
4476.03 -151.01 -3.26
NYSE Arca Biotech
4644.95
4456.48
NYSE Arca Pharma
527.50
516.89
519.54
-3.81
KBW Bank
108.32
104.22
-2.61
PHLX§ Gold/Silver
105.05
81.94
80.73
-1.25
PHLX§ Oil Service
81.25
139.51
134.30
135.22
-2.81
1391.01
24.06
1317.96
19.84
PHLX§ Semiconductor
Cboe Volatility
-1.05
12517.26 12246.41 12302.54 -130.61
Company
Volume
(000)
Symbol
Last
Net chg
After Hours
% chg
High
Low
SPY
10,926.3 260.15
-0.45
PwrShrs QQQ Tr Series 1 QQQ
7,501.4 158.86
-0.22
iShares MSCI EAFE ETF EFA
5,776.6
68.65
...
unch.
69.41
68.59
VanEck Vectors Jr Gold GDXJ
5,420.8
32.53
0.12
0.37
32.53
32.40
iShares MSCI Emg Markets EEM
4,227.0
47.53
...
unch.
47.67
47.53
Automatic Data
ADP
3,341.6 112.26
...
unch. 113.16 112.26
JPM Alerian MLP
AMJ
2,550.0
23.67
0.03
0.13
23.67
23.67
Ford Motor
F
2,519.1
10.83
...
unch.
10.86
10.80
SPDR S&P 500
-0.17 265.32 260.13
-0.14 163.58 158.86
Percentage gainers…
RH
RH
521.9
85.23
9.92
13.17
85.30
65.50
lululemon athletica
LULU
637.6
83.04
4.33
5.50
86.40
78.64
Geron
GERN
357.1
5.38
0.23
4.47
5.65
5.12
AVEO Pharmaceuticals AVEO
59.0
3.02
0.10
3.42
3.02
2.92
BlackBerry
64.6
12.75
0.35
2.82
12.80
12.40
1.95
BB
3449.61
26.6
6.0
3.5
498.46
1.3
-4.7
-3.2
...And losers
116.52
88.02
14.3
-1.6
13.7
InspireMD
NSPR
136.3
2.05
-0.35
-14.58
2.47
-1.52
93.26
76.42
-2.6
-4.7
6.3
Pareteum
TEUM
806.9
2.80
-0.28
-9.09
3.29
2.50
-2.04
171.55
117.79
-18.4
Sonic
SONC
99.1
24.15
-1.19
-4.70
25.99
22.51
1445.90
37.32
960.01
9.14
400.0
21.80
-0.56
-2.50
21.80
21.80
74.6
16.25
-0.34
-2.05
16.87
16.16
-2.42
1327.94 -52.16 -3.78
1.47
22.50
6.99
-9.6 -10.7
6.0
31.6
95.1 103.8
24.1
14.3
BlackRock Taxable Mun Bd BBN
FireEye
FEYE
Sources: SIX Financial Information; WSJ Market Data Group
Region/Country Index
Close
Percentage Gainers...
Net chg
Latest
% chg
YTD
% chg
–0.13
–0.46
0.81
–2.1
–1.6
–1.1
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
627.30
–10.44 –1.64
Sao Paulo Bovespa 83808.06 –1279.81 –1.50
S&P/TSX Comp
15216.18
–0.54
–82.38
S&P/BMV IPC
–0.14
46793.58
–64.88
0.62
Santiago IPSA
4126.60
25.25
–2.3
9.7
–6.1
–5.2
–2.0
EMEA
Eurozone
Belgium
Denmark
France
Germany
Israel
Italy
Netherlands
Russia
South Africa
Spain
Sweden
Switzerland
Turkey
U.K.
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
OMX Copenhagen
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
FTSE/JSE All-Share
IBEX 35
SX All Share
Swiss Market
BIST 100
FTSE 100
FTSE 250
3022.15
390.84
263.86
The Global Dow
DJ Global Index
DJ Global ex U.S.
367.57
370.39
3824.42
882.14
5115.74
11970.83
1448.50
22209.75
525.76
1243.99
56050.79
9473.60
552.16
8638.42
116196.54
7000.14
19389.13
–4.08
–1.80
2.13
4.39
4.28
27.40
2.11
49.46
183.57
10.14
197.99
7.01
13.03
–125.64
92.60
5.69
129.13
–223.80
111.45
202.04
S&P/ASX 200
5832.30
Shanghai Composite 3166.65
Hang Seng
30790.83
S&P BSE Sensex
33174.39
Nikkei Stock Avg
21317.32
Straits Times
3439.35
Kospi
2452.06
Weighted
10986.79
SET
1802.58
1.21
1.17
0.72
0.24
0.98
1.56
0.70
0.90
1.35
1.06
–0.22
–0.19
41.80
32.93
242.06
107.98
551.22
26.89
14.98
146.74
1.48
0.99
1.04
1.52
1.62
1.05
0.72
1.05
0.79
0.33
2.65
0.79
0.61
1.35
0.08
–5.6
–3.9
–3.9
–4.8
–3.7
–7.3
–4.1
1.6
–3.5
7.8
–5.8
–5.7
–2.9
–7.9
0.7
–8.9
–6.5
–3.8
–4.2
2.9
–2.6
–6.4
1.1
–0.6
3.2
2.8
Sources: SIX Financial Information; WSJ Market Data Group
Company
Symbol
Sears Hometown Outlet
Astrotech
AgEagle Aerial Systems
Moxian
InspireMD
SHOS
BMO REX Micro FANG+
Par Technology
Marrone Bio Innovations
VS 2x VIX Short Term
TOP Ships
FNGD
Direxion S&P Biotech Bear
Athenex
Myovant Sciences
Aratana Therapeutics
ProSharesUltVIXST
LABD
Latest Session
Close Net chg % chg
ATNX
MYOV
PETX
UVXY
1.38
2.01
...
2.01
2.03
-22.5
-59.2
-23.5
-3.0
-92.9
Red Violet
LongFin Cl A
IDT Corp B
Juniper Pharmaceuticals
Invitae
RDVT
45.00
12.98
2.32
10.46
2.52
6.31
1.80
0.32
1.37
0.32
16.32
16.10
16.00
15.07
14.55
57.77 31.89
14.14 7.02
2.39 0.85
47.19 4.66
3.85 0.13
...
81.8
12.6
-69.1
-99.9
ITUS
Cogint
RXi Pharmaceuticals
Macrogenics
Jason Industries
ITUS
3.72
17.30
21.32
4.35
20.10
0.43
1.99
2.36
0.48
2.13
13.07
12.96
12.45
12.40
11.85
12.08 2.71
20.79 11.21
24.14 9.92
7.67 3.67
87.00 8.52
-64.6
...
87.7
-15.9
-67.9
BMO REX Micro FANG+ 3X
Zosano Pharma
PLx Pharma
Sangamo Therapeutics
Restoration Robotics
FNGU
Most Active Stocks
Company
Symbol
General Electric
SPDR S&P 500
Bank of America
iShares MSCI Emg Markets
Twitter
GE
Finl Select Sector SPDR
Facebook Cl A
PwrShrs QQQ Tr Series 1
Advanced Micro Devices
Micron Technology
XLF
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
New car loan
4.50%
2.37%
407-422-7129
3.50
Sunshine Savings Bank
Tallahassee, FL
2.49%
850-219-7200
3.00
UniBank for Savings
Whitinsville, MA
2.49%
800-578-4270
MainSource Bank
Brookville, IN
2.65%
765-647-3591
t
t
New car loan
2.50
A M J J A S O N D J FM
2017
2018
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.50-1.75 1.25-1.50
Prime rate*
4.50
4.75
Libor, 3-month
2.25
2.30
Money market, annual yield
0.35
0.35
Five-year CD, annual yield
1.64
1.66
30-year mortgage, fixed†
4.46
4.45
15-year mortgage, fixed†
3.92
3.93
Jumbo mortgages, $424,100-plus† 4.73
4.79
Five-year adj mortgage (ARM)† 4.25
4.23
New-car loan, 48-month
3.61
3.65
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.75 l
l
4.00
l
1.15
0.25 l
l
1.28
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.75
2.30
0.36
1.66
4.49
3.95
4.96
4.50
3.65
1.50
1.50
2.03
-0.07
0.17
0.59
0.71
0.35
0.78
0.68
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
HAIR
27.15
152.22
159.08
10.00
52.40
-1.95
-4.90
-3.24
-4.21
-5.69
30.33 22.89
195.32 138.81
175.21 130.38
15.65
9.70
63.42 26.36
Landcadia Holdings Cl A
AstroNova
Steel Partners Holdings
VanEck AMT-Fr Lg Mun
iPath Global Carbon
LCA
AMD
MU
Tuesday
t
One year ago
NYSE Arca
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
1.50
0
0.75
–5
0.00
–10
30
46.40
142.82
17.71
13.25
11.88
6.05
4.69
6.55
3.65
5.15
...
...
-45.7
86.0
-48.6
3.35
2.65
3.29
23.60
3.10
-0.91
-0.70
-0.77
-5.31
-0.62
-21.36
-20.90
-18.97
-18.37
-16.67
6.43 0.60
6.95 2.45
11.20 2.51
32.74 14.36
3.88 0.77
4.7
-39.1
-62.0
32.9
113.8
47.11
12.14
3.20
19.00
5.92
-9.39
-2.41
-0.63
-3.55
-1.09
-16.62
-16.56
-16.34
-15.74
-15.55
71.95 41.20
41.60 3.61
9.95 1.23
27.50 4.05
11.95 3.80
...
-67.7
137.0
369.1
...
UIVM
VRNA
LAND
HAWX
ALOT
SPLP
MLN
GRN
Volume % chg from Latest Session
(000) 65-day avg Close % chg
155
714
130
880
177
2952
2258
1392
1210
1087
310
177
111
459
55
956
865
751
747
692
52-Week
High
Low
6.20 -86.64
50.37 -1.08
20.56 -1.96
12.16 -4.25
25.67 -0.77
10.04
15.10
17.70
19.74
18.23
46.40
55.54
25.55
14.29
28.00
0.10
-0.33
-0.56
0.71
6.24
6.05
49.30
10.44
10.77
23.99
11.00 9.89
15.89 11.00
20.70 17.70
20.43 19.41
18.41 5.17
U.S.-dollar foreign-exchange rates in late New York trading
Euro
5
6.20 -40.20 -86.64
34.68 -24.60 -41.50
6.67 -3.20 -32.42
8.65 -3.05 -26.07
5.41 -1.59 -22.71
52-Week
Low
% chg
Currencies
15%
2.25
High
CURRENCIES & COMMODITIES
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
10
Latest Session
Close Net chg % chg
* Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Forex Race
3.00
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Yen
Vietnam dong
Argentina peso
.0496 20.1547 8.3
Brazil real
.3007 3.3259 0.4
Canada dollar
.7759 1.2889 2.5
Chile peso
.001649 606.30 –1.5
Ecuador US dollar
1
1 unch
Mexico peso
.0544 18.3868 –6.5
Uruguay peso
.03526 28.3600 –1.5
Venezuela b. fuerte .00002049600.0001 479504.7
Europe
s
WSJ Dollar index
2017
2018
Corporate Borrowing Rates and Yields
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1435.873
2.634
2.718
2.736
1.818
10-yr Treasury, Ryan ALM 1682.015
DJ Corporate
371.405
Aggregate, Barclays Capital 1910.870
High Yield 100, Merrill Lynch 2826.514
Fixed-Rate MBS, Barclays 1961.030
Muni Master, Merrill
515.763
2.790
3.736
3.160
6.260
3.370
2.498
2.881
3.749
3.210
6.192
3.380
2.502
2.943
3.814
3.230
6.319
3.410
2.520
2.058 –1.109 –0.582
2.879 2.029 2.065
2.380 0.853 1.144
4.948 3.439 3.506
2.660 0.593 1.120
1.736 1.874 1.787
790.296
6.044
6.074
6.104
5.279
0.209 0.180
2.680 5.357
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7680 1.3021
China yuan
.1592 6.2832
Hong Kong dollar
.1274 7.8466
India rupee
.01540 64.918
Indonesia rupiah .0000728 13745
Japan yen
.009494 105.34
Kazakhstan tenge .003137 318.82
Macau pataca
.1237 8.0847
Malaysia ringgit
.2579 3.8770
New Zealand dollar
.7268 1.3759
Pakistan rupee
.00865 115.600
Philippines peso
.0191 52.446
Singapore dollar
.7633 1.3101
South Korea won .0009301 1075.15
Sri Lanka rupee
.0064074 156.07
Taiwan dollar
.03425 29.196
Thailand baht
.03203 31.220
Commodities
1.7
–3.4
0.4
1.6
1.9
–6.5
–4.2
0.5
–4.5
–2.4
4.5
5.0
–2.0
0.7
1.7
–1.6
–4.2
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Country/currency
Americas
Asia-Pacific
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Close
Nasdaq
Total volume*2,286,837,042 361,526,613
Adv. volume* 384,906,055 77,303,918
Decl. volume*1,881,750,904 283,776,640
Issues traded
3,071
1,365
Advances
675
401
Declines
2,274
943
Unchanged
122
21
New highs
54
7
New lows
89
24
Closing tick
566
65
Closing Arms†
1.45
1.30
Block trades*
7,819
1,574
Ranked by change from 65-day average*
26.3
163.6
59.1
12.1
31.1
3.75%
EMBI Global, J.P. Morgan
SGMO
Symbol
Country/currency
Treasury, Ryan ALM
PLXP
77,768
76,347
71,257
67,856
67,081
Compare the performance of selected
global stock indexes, bond ETFs,
currencies and commodities at
WSJ.com/TrackTheMarkets
Bond total return index
ZSAN
RDVT
QQQ
1 2 3 5 710
years
maturity
JASN
Company
Track the Markets
1
3 6
month(s)
MGNX
Red Violet
USAA MSCI Intl Value Mom
Verona Pharma ADR
Gladstone Land
iSh Cur Hdg MSCI ACWI US
* Volumes of 100,000 shares or more are rounded to the nearest thousand
1.99%
651-777-8365
RXII
30.54 12.73
286.63 232.51
33.05 22.07
52.08 38.71
36.80 14.12
3.65%
TrustCo Bank
Orlando, FL
4.00
Prime rate
Lake Elmo Bank
Lake Elmo, MN
COGT
4.27
-1.70
-3.02
-1.82
-12.03
notes and bonds
Bankrate.com avg†:
NVTA
13.44
260.60
29.52
47.53
28.07
FB
t
A consumer rate against its
benchmark over the past year
JNP
68.6
5.2
16.0
11.3
168.5
s
Selected rates
IDT
152,789
118,476
BAC
84,652
EEM
80,005
TWTR 79,656
SPY
s
U.S. consumer rates
LFIN
Volume Movers
Benchmark
Yields
Treasury yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Symbol
4.10
7.15
...
4.16
36.75
NSPR
TOPS
Company
30.95
30.20
23.45
18.78
17.65
MOXC
TVIX
52-Week
Low
% chg
0.65
0.61
1.20
0.46
0.36
UAVS
MBII
High
2.75
2.63
6.33
2.91
2.40
ASTC
PAR
Total volume* 933,331,560 11,794,307
Adv. volume* 212,718,120 2,839,159
Decl. volume* 699,528,762 8,452,087
Issues traded
3,079
332
Advances
957
103
Declines
2,030
209
Unchanged
92
20
New highs
37
2
New lows
125
14
Closing tick
82
30
Closing Arms†
1.49
1.35
Block trades*
6,842
122
Percentage Losers
CREDIT MARKETS
Interest rate
NYSE NYSE Amer.
593.12
International Stock Indexes
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
Thailand
Volume, Advancers, Decliners
4939.86
-0.73
Nasdaq PHLX
World
503.24
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 50,000 shares.
Most-active issues in late trading
12.7
14.7
S&P
500 Index
Late Trading
.00004383
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
22816
0.5
.04870 20.535
.1665 6.0046
1.2405 .8062
.003965 252.23
.010207 97.97
.1296 7.7180
.2944 3.3968
.01742 57.397
.1215 8.2311
1.0564 .9466
.2511 3.9817
.0380 26.3070
1.4159 .7063
–3.5
–3.2
–3.2
–2.6
–5.4
–6.0
–2.4
–0.5
0.6
–2.9
4.9
–6.5
–4.6
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6528 .3770 –0.04
.0567 17.6400 –0.7
.2867 3.4885 0.3
3.3417 .2992 –0.7
2.5974 .3850 0.01
.2745 3.642 –0.2
.2667 3.7499 –0.01
.0857 11.6693 –5.6
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 83.34
Tuesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
628.87
-0.28
195.57
65.25
2.691
1341.30
-0.21
-0.30
0.073
-13.10
0.22 0.27 –3.07
Sources: Tullett Prebon, WSJ Market Data Group
-0.04
% Chg
YTD
% chg
645.87
532.01
11.87
0.56
-0.11 200.52
66.14
-0.46
3.63
2.79
-0.97 1362.40
166.50
42.53
2.55
1208.60
6.24
34.90
-13.08
6.85
0.88
7.99
-8.87
2.68
Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com
.
B12 | Wednesday, March 28, 2018
* *****
THE WALL STREET JOURNAL.
BANKING & FINANCE
Paid $67 Million
Pay Bias at U.S. Banks in U.K. AIG
To Two CEOs in 2017
LONDON—U.S. investment
banks in London have some of
the biggest gender pay gaps in
the country, reflecting long-established cultures of men dominating top trading and advisory roles and women working
in junior posts or as administrators.
Women are paid about half
as much as men in the main
U.K. investment-banking units
of Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley, marking the widest gaps among around 40
global financial companies
that have reported pay data to
the U.K. government.
In one small JPMorgan unit
that included senior mergerand-acquisition bankers on the
snapshot day for the pay data,
April 5, 2017, women were paid
54% less, and women’s bonuses were 89% less than
those paid to men. The pay
gap across JPMorgan’s 16,000
U.K. employees was 36%, as
measured by median hourly
pay, and 47% in its largest investment-banking unit.
Bank of America’s investment-banking units paid
women 47% less, while the gap
across all of its 6,000 U.K. employees was 31%. Part of the issue is that women hold 98% of
the bank’s lower-paid administrative posts, it said. The picture at Morgan Stanley was
similar, with the unit housing
investment bankers and traders paying women 46% less,
for an overall 35% median gap
across its U.K. workforce.
Getting more women into
companies and boardrooms
has been a hot topic for years
but the issue is boiling over in
the wake of allegations of sexual harassment and discrimination across industries. Some
money managers have said
they won’t invest in companies
that don’t have women on
their boards—even as they
work to improve their own internal gender mixes.
All three banks pledged to
improve the figures by supporting and encouraging
women to climb their way to
Pay Gap Runs Deep
Women at the largest investment banks in the U.K. were paid at least
30% less than men.
Median hourly pay for women as a percentage of men’s pay for
selected financial institutions
9
8
Credit Suisse International
Goldman Sachs International
Merrill Lynch International
JPMorgan Securities PLC
Others
7
6
5
The median hourly wage in
these companies was 46-47%
lower for women than men
4
3
2
1
-100%
-80
-60
-40
-20
0
Women paid less than men
Note: includes subsidiaries
Source: U.K. government
THE WALL STREET JOURNAL.
JASON ALDEN/BLOOMBERG
BY MARGOT PATRICK
London’s Canary Wharf, where many U.S. banks have offices.
senior positions, and by welcoming back women who leave
the workforce to have children.
Goldman Sachs Group Inc.,
which earlier this month said
it pays women 36% less in its
main London unit, also has put
gender parity on its agenda,
recently signing a British government charter to set targets
and tie senior manager pay to
the outcomes.
Citigroup Inc. on Tuesday
reported an overall pay gap in
the U.K. of 30% and a 36% gap
in its main investment-banking
and markets arm. The lender’s
Europe chief executive, Jim
Cowles, in a memo to staff said
the bank aims to have a 30%
female representation in
higher-level roles in the Europe, Middle East and Africa
division by 2025, and is in the
process of setting global targets.
Data for the group of
around 40 financial companies
were compiled by The Wall
Street Journal from filings to a
government website. Most
firms had to make separate filings for several divisions,
sometimes skewing the figures. A JPMorgan spokeswoman said the unit with the
starkest figures represented
just 3.5% of its U.K. staff and
has shrunk because of a
streamlining of its legal entities in the country.
The U.K. introduced the reporting requirement to put the
spotlight on companies with
big pay and role imbalances.
Any company with more than
250 employees in the country
must report before an April 4
deadline and around 9,000 filings are expected.
The figures measure median
hourly pay by gender and
don’t indicate men and women
are paid different rates for the
same job, which is illegal in
many countries including the
U.K. and the U.S.
“The root cause for what we
see here is really the high proportion of men in senior and
high-paying roles,” said Peter
Goerke, head of human resources at Credit Suisse
Group AG. The Swiss bank on
Tuesday said it pays women
29% less in median hourly pay
across its U.K. operations, and
45% less in a unit covering
global markets, investment
banking and capital markets.
He said making significant
improvements will mean
stretching the comfort zones
of senior managers and headhunters, including sometimes
asking headhunters for allwoman candidate lists and
steering interview processes to
get more women to join and
rise through its ranks.
The bank won’t discriminate, either negatively or positively, Mr. Goerke said, but if
three of 10 candidates are female, “maybe you interview all
three of the women and three
of the men...to steer it a little
bit.”
At the end of 2017, just 14%
of Credit Suisse’s managing directors were women, Mr.
Goerke said. The aspiration is
for around 18% by 2021.
BY LESLIE SCISM
American International
Group Inc. paid $67.3 million
to its chief executive officers
in 2017, with part of the payment going to a man who resigned under pressure early in
the year and another portion
to attract his successor.
The steep executive pay is
the cost of AIG changing its
strategy for boosting lackluster profit margins. In March
2017, former Chief Executive
Peter Hancock stepped down
under pressure from activist
investors as his turnaround
plan suffered setbacks. He was
succeeded in mid-May by
Brian Duperreault, who had
begun his career at AIG in
1973.
Mr. Duperreault, who ran
three other firms before being
recruited by AIG last year,
racked up $43.1 million in
compensation for 2017, according to AIG’s newly filed
proxy. That includes two previously disclosed awards totaling $28.2 million to get him to
leave Hamilton Insurance
Group Ltd., a Bermuda property-casualty insurer and reinsurer that he founded in 2013.
Mr. Hancock had total compensation of $24.2 million. Of
that, $5 million is a previously
disclosed payment for agreeing to stay until a successor
was found, which turned out
to be about two months. Mr.
Hancock also received $9.5
million as a lump sum under
terms of AIG’s executive-separation agreement, which was
in place as of 2012, also previously disclosed.
Messrs. Duperreault and
Hancock earned salary totaling
$1.6 million between them: $1
million for Mr. Duperreault’s
7½ months and just under
$600,000 for Mr. Hancock’s
4½ months. The executives
also had long-term-incentive
stock awards—valued at $11.2
million for Mr. Duperreault,
and $8.1 million for Mr. Hancock.
AIG’s compensation for its
top executives exceeds what
many Wall Street banks paid
out. All together, the five biggest Wall Street bank CEOs received $126 million in total
compensation in 2017, and the
average was $25 million. JPMorgan Chase & Co.’s James
Dimon—whose bank’s $2.5
trillion balance sheet is about
five times the size of AIG’s—
was the highest paid of the
five at $29.5 million.
The changes at the top of
AIG occurred as the global insurance conglomerate continues to try to regain its luster
in the wake of repaying a
nearly $185 billion crisis-era
bailout by U.S. taxpayers. AIG
wrapped up repayment in
2012, after selling many of the
most-profitable parts to raise
cash. Since then, it has faced
pressure by activist investors
Carl Icahn and John Paulson
AIG’s compensation
for top executives
exceeds what many
big banks paid out.
to grow more rapidly.
Also in Tuesday’s proxy,
AIG disclosed it is shrinking
its board for the second
straight year, to 11 from 16 in
2016. Two directors aren’t
standing for re-election, as
previously disclosed by AIG in
regulatory filings, and no one
is running to succeed them,
according to the proxy.
One of the departing directors is Samuel J. Merksamer,
who joined the board in spring
2016 as part of an agreement
between AIG and Mr. Icahn.
The billionaire investor was
one of the most vocal of AIG’s
shareholders in pushing Mr.
Hancock to take aggressive actions to improve AIG’s results,
including splitting it apart. At
the time, Mr. Merksamer was
a managing director of Icahn
Capital LP.
—Liz Hoffman
contributed to this article.
Chinese Lenders Embrace Old Fundraising Tool Anbang
BY SHEN HONG
SHANGHAI—Old habits die
hard, especially for Chinese
banks.
The lenders, especially
smaller ones, are turning back
to a favorite but costly tool to
raise money in wholesale markets, as slowing deposit
growth makes it hard for them
to fund new loans or honor repayments on investment products.
The resurgent popularity of
short-term loans known as negotiable certificates of deposits, or NCDs, which banks have
used to pile up bets on bonds
in recent years among other
uses, highlights the difficulties
that Beijing faces in its battle
against high debt levels and
other leverage.
Chinese banks’ issuance of
these bondlike loans, which
range from one to 12 months,
has reached 2.1 trillion yuan
($335 billion) this month, up
42% from a recent monthly
low of 1.48 trillion yuan in
January, edging closer to Sep-
tember’s record of 2.2 trillion
yuan, according to data provider Wind Info.
There are two risks involved: that banks become too
reliant on these types of
short-term funding, and that it
could become more expensive
if borrowing costs in China
rise in line with global interest
rates.
“The rising NCD issuance
reflects increasing difficulties
for commercial banks to attract deposits to support their
business expansion, when
bank loans are still growing at
a faster speed than deposits,”
said Zhu Chaoping, a Shanghai-based economist at J.P.
Morgan Asset & Wealth Management.
Deposits at Chinese banks
rose 8.6% in February, the
slowest rate in nearly 40
years, down from 11% growth
in January and 11% a year earlier. In contrast, yuan-denominated loans last month increased 13% from a year
earlier.
China introduced negotiable
Resurgence
Issuance of negotiable certificates of deposit has
rebounded sharply as Chinese banks scramble for funds.
NCD issuance volume
NCD average issuance rate
2.5 trillion yuan
5.2%
5.0
2.0
4.8
1.5
4.6
1.0
4.4
0.5
4.2
0
4.0
2017
’18
2017
’18
Notes: 2018 data through March 26; 1 trillion yuan= $159.2 billion
Source: Wind Info
THE WALL STREET JOURNAL.
certificates of deposit in 2013
as a step toward liberalizing
interest rates, as it gave banks
the ability to use the new tool
to be more free in setting borrowing costs. However, issuance didn’t take off until two
years ago, when banks began
loading up on short-term
loans that they could reinvest
in the domestic bond market,
which was booming.
“The government intends to
develop NCDs into a genuine
fundraising instrument, but
the market has turned it into a
tool for leveraging,” said Qu
Qing, chief fixed-income analyst at Hua Chuang Securities.
Wary of the risk, regulators
warned banks in April 2017
against abusing these loans to
fund leveraged investments.
The warning briefly pushed issuance to a low of 1.23 trillion
yuan in May. But it has fluctuated since then, reflecting
lenders’ demand. Any sharp
increase in the cost of issuing
these securities could severely
weaken banks’ ability to finance loans or repay investors
in short-term investment
products backed by long-term
assets like bonds, analysts say.
The average cost of issuing
negotiable certificates of deposit has risen to 4.83% this
month, up from 4.75% last
month and 4.54% a year ago,
Wind Info said.
“There’s definitely a liquidity risk. If borrowing costs rise
further and no one wants to
buy your NCD or the bonds
you hold, you are finished,”
Mr. Qu said.
Tesla’s Stock Slides Amid Crash Investigation
BY BEN EISEN
Tesla Inc. shares sank 8.2%
on Tuesday, on a day when
regulators said they were
probing a fatal crash of one of
the company’s vehicles and a
rating firm downgraded the
electric-vehicle maker’s debt.
The decline took the stock
to its lowest closing level in a
year, extending a rout in one of
the hottest U.S. tech firms of
recent years, including a 46%
gain last year. The company’s
bond prices also tumbled.
The U.S. National Transportation Safety Board said in a
social-media posting that two
investigators are conducting a
field investigation into a fatal
Tesla crash near Mountain
View, Calif., last week. It was
unclear if the automated control system on the vehicle was
active when the crash happened.
The San Jose Mercury News
reported that the driver of the
Tesla died in the crash Friday
Slippery Slope
Tesla's stock and bond prices slid over the last
month, extending declines after a government
agency said it was investigating a recent crash.
Tesla's stock price
Price of Tesla's 5.3%
bonds due in 2025
$380
102 cents on the dollar
360
100
340
98
320
96
300
94
280
92
260
90
2017
’18
Sources: FactSet (stock price); MarketAxess
morning when it hit a barrier
separating the lanes.
A spokesperson for Tesla
said in a statement: “We have
been deeply saddened by this
accident, and we have offered
2017
’18
THE WALL STREET JOURNAL.
our full cooperation to the authorities as we work to establish the facts of the incident.”
This is the most recent
Tesla crash to attract investigators’ attention to the auto
maker’s semi-autonomous system. The NTSB previously
found that Tesla’s autopilot shared some blame in a
2016 fatal crash. The auto
maker has said its system improves safety.
The company’s stock has
fallen in 11 of the past 15 trading sessions, dropping 20%
over the past month alone and
trailing the S&P 500’s 4.8%
fall. Tesla, which makes electric vehicles, has burned
through cash in recent years.
“We continue to believe
that the Tesla investment thesis hinges on the company’s
ability to make the Model 3
profitably and deliver good initial build quality,” said Bernstein analyst Toni Sacconaghi
Jr. in a note to investors this
month.
Those betting against the
stock had a position worth
about $9.4 billion this week,
according to IHS Markit, making Tesla the most shorted U.S.
stock in dollar terms. Demand
to short the stock has increased through the recent
selloff, the research firm said.
Short sellers typically borrow
a stock and sell it, hoping to
buy it back at a lower price to
return it. When the stock falls,
as Tesla’s has recently, they
profit.
Moody’s Investors Service
also lowered its ratings on the
company’s debt further into
junk territory late Tuesday.
The corporate grade was
dropped to B3 from B2, and its
unsecured notes received a
rating of Caa1, down from B3.
“Tesla’s ratings reflect the
significant shortfall in the production rate of the company’s
Model 3 electric vehicle,”
Moody’s analysts wrote in the
report. “The company also
faces liquidity pressures due to
its large negative free cash
flow and the pending maturities of convertible bonds.”
—Tim Higgins
and Charley Grant
contributed to this article.
Founder’s
Trial Starts
In China
BY JAMES T. AREDDY
SHANGHAI—Anbang Insurance Group Co. founder Wu
Xiaohui went on trial Wednesday, a month after Chinese authorities formally seized the
once highly acquisitive insurer.
The Shanghai No.1 Intermediate People’s Court said proceedings had opened against
Mr. Wu on allegations of over
$10 billion worth of fraudulent
fundraising and abusing his
power. Those charges were
handed up in February, the
same day the insurance industry’s regulatory body said it
had seized control of Anbang.
The court statement, in a
microblog posting, said Mr.
Wu was being defended by an
attorney who wasn’t named. It
didn’t immediately provide details about the charges.
The court didn’t specify how
long the trial might last. But
even complex court cases in
China tend to wrap up in a day
or two, typically leading to findings of guilt for the accused.
Anbang has said it supports
action by authorities to manage
the firm, but it has withheld
comment about Mr. Wu. A
spokesman couldn’t immediately be reached on Wednesday.
Mr. Wu hasn’t been seen or
commented publicly since last
June, when he was detained
and Anbang said he would be
unable to perform his duties.
The industry regulator’s announcement in February that it
would manage Anbang for at
least a year capped a dramatic
downturn for the insurer and
provided evidence of Beijing’s
determination to address risks
to its indebted financial system.
Anbang emerged in recent
years as a fast-expanding insurer that used client money
to make some of the most
iconic international purchases
by a Chinese investor—notably
New York City’s Waldorf Astoria hotel for nearly $2 billion.
—Chunying Zhang
contributed to this article.
.
THE WALL STREET JOURNAL.
Wednesday, March 28, 2018 | B13
* * * *
MARKETS
Treasury
Prices
Regain
Footing
Yuan Boosted by Central Bankers
BY SAM GOLDFARB
BY SAUMYA VAISHAMPAYAN
Treasury prices strengthened, pushing the yield on the
10-year note to its lowest level
in seven weeks, amid continued jitters in the stock market
and easing concerns about the
potential for a
CREDIT
more aggressive
MARKETS Federal Reserve.
The yield on
the
10-year
Treasury note settled at
2.790% on Tuesday, compared
with 2.843% Monday.
Yields, which fall when
bond prices rise, declined
steadily for much of the trading session before falling more
steeply near the 3 p.m. settlement as stocks turned lower.
Though they staged a rally
Monday, stocks have been
weighed down in recent weeks
by concerns about rising trade
tensions and worries related
to technology companies such
as Facebook Inc. That has
helped bolster demand for assets such as Treasurys, which
offer steady interest payments
and essentially no credit risk.
Traders piled into bonds
Tuesday even as the Treasury
sold $35 billion of five-year
notes, part of nearly $300 billion of issuance this week.
Though new debt can sometimes weigh on the prices of
outstanding bonds, analysts
said larger forces supported
the market, including confidence among investors about
the direction of U.S. inflation
and the Fed’s interest-rate policy.
China’s central bank guided
the yuan to its strongest level
against the U.S. dollar since its
surprise devaluation more
than 2½ years ago, and market
participants can’t agree on
why it has appreciated.
The People’s Bank of China
set the dollar’s reference rate
at 6.2816 yuan on Tuesday,
putting the yuan at its strongest since Aug. 11, 2015. The
yuan’s stronger so-called fix,
which is partly based on the
previous day’s close, followed
a surge in its value on Monday
afternoon. China’s central bank
allows the currency pair to
trade 2% above and below its
reference rate each day.
The yuan rose further once
trading began in mainland
China. There, one dollar ended
at 6.2728 yuan, after earlier
trading at intraday levels last
hit in August 2015. The yuan’s
value was stronger in the offshore market, where it trades
more freely, though the Chinese currency swung later in
the day. The yuan gave up an
earlier gain of as much as 0.3%
in afternoon trading to be
down 0.2% against the dollar
for the day. One dollar bought
6.2665 yuan offshore as of late
Tuesday in Hong Kong.
In late New York trading,
the yuan slipped 0.2% against
the dollar for the day, with one
dollar buying 6.2832 yuan.
Analysts said it wasn’t clear
what triggered the yuan’s rally
this week.
Eddie Cheung, a foreign-exchange strategist at Standard
Chartered in Hong Kong, said
AUCTION RESULTS
Here are the results of Tuesday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
$176,263,530,400
Applications
$65,000,070,400
Accepted bids
$706,157,900
" noncompetitively
$500,000,000
" foreign noncompetitively
99.867389
Auction price (rate)
(1.705%)
1.731%
Coupon equivalent
57.88%
Bids at clearing yield accepted
912796LX5
Cusip number
The bills, dated March 29, 2018, mature on April 26,
2018.
52-WEEK BILLS
Applications
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Coupon equivalent
Bids at clearing yield accepted
Cusip number
$71,856,810,500
$24,000,018,500
$487,210,500
$3,200,000
97.907000
(2.070%)
2.132%
80.28%
912796PX1
The bills, dated March 29, 2018, mature on March 28,
2019.
FIVE-YEAR NOTES
$93,750,707,900
Applications
$41,165,536,500
Accepted bids
$57,178,700
" noncompetitively
$0
" foreign noncompetitively
99.478566
Auction price (rate)
(2.612%)
2.500%
Interest rate
57.18%
Bids at clearing yield accepted
9128284D9
Cusip number
The notes, dated April 2, 2018, mature on March 31,
2023.
QILAI SHEN/BLOOMBERG
China fixes its
currency at the
strongest rate against
the dollar since 2015
The yuan is up 0.8% against the dollar so far this month, breaking out of trading in a narrow range. A food market in Shanghai.
the rise was driven by the offshore market on Monday. The
currency pair’s move intensified after the dollar hit a key
level—6.30 yuan—triggering
orders to sell the dollar
against the yuan at that level,
he added.
The yuan’s recent advance
marks a shift from its trade
this month, when it was
largely confined to a narrow
range. The yuan had risen just
0.2% against the dollar in
March through Friday. As of
late Tuesday in New York, it
was up 0.8% in March. That
compares with a 0.7% drop
against the dollar in February
and a surge of 3.5% in January.
The yuan may get a boost in
the longer run if more foreign
investors buy Chinese debt.
Bloomberg LP on Friday said it
plans to include Chinese bonds
in its Bloomberg Barclays
Global Aggregate Index next
year. The index would be the
first major benchmark to include debt from the world’s
second-largest economy and
could trigger passive flows
that total $110 billion once the
bonds are fully added to the
index, according to Goldman
Sachs.
The value of the Chinese
yuan has long been a point of
contention with U.S. politicians, including President Donald Trump, who have argued
that China kept its currency
artificially weak as a way to
fuel exports. China and the
U.S. have quietly started negotiating to improve U.S. access
to Chinese markets, part of
discussions on trade between
the two countries.
Analysts at Bank of America
Merrill Lynch said this month
that China might try to ease
trade pressures by strengthening the yuan.
Still, Mr. Cheung from Standard Chartered said he didn’t
think trade was the reason for
the yuan’s latest rise. “Trump
hasn’t really talked about the
currency in a long time, so I
don’t see why China would
want to put this on the table,”
he said, referring to a stronger
yuan.
A stronger yuan stands to
crimp the competitiveness of
Chinese goods, a factor that
could harm the country’s economy this year, even though
China is less reliant on exports
for growth these days.
“China’s growth is doing OK
this year, but that doesn’t
mean it can stand that much
appreciation,” Mr. Cheung said.
Sudden Shift
The yuan has strengthened
sharply against the dollar
this week.
How many Chinese
yuan one dollar buys
6.20
Tuesday
6.2832
6.25
6.30
6.35
6.40
6.45
6.50
Note: Scale inverted to
show a stronger yuan
6.55
Jan.
Feb.
March
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
Dollar Gains, Helped by Declining Euro, Oil
BY IRA IOSEBASHVILI
The dollar rose against a
broad range of currencies
Tuesday, reflecting weakerthan-expected European data
and a drop in oil prices.
The WSJ
CURRENCIES
Dollar Index, which
measures
the U.S. currency against a
basket of 16 others, increased
0.3% to 83.34.
The news “sparked some
concerns that a strong euro,
fears about a global trade war
and tightening financial conditions may be putting the
brakes on the…strong recovery,” Omer Esiner, chief market analyst at Commonwealth
Foreign Exchange, said in a
note to clients.
An uneven recovery in the
eurozone could complicate the
European Central Bank’s plans
to unwind its monetary-stimulus program and eventually
raise interest rates.
The central bank responded
to a 2017 pickup in growth by
cutting back on bond purchases under a stimulus program known as quantitative
easing, and investors expect to
see those purchases end later
this year. Higher rates tend to
make the euro more attractive
to yield-seeking investors.
The
single
currency
dropped 0.3% to $1.2405 in
late New York trading.
At the same time, a slide in
oil prices helped lift the dollar
against the currencies of some
commodities-producing countries. The dollar rose 0.35%
against the Russian ruble to
57.40, while also gaining
against the Mexican peso and
Brazilian real. U.S. crude for
May delivery lost 30 cents a
0.3%
Increase by the WSJ Dollar Index
on Tuesday
barrel, or 0.5% to $65.25.
Some emerging-market investors also have been
spooked by a trade spat between the U.S. and China, after
President Donald Trump last
week threatened to levy tariffs
on as much as $60 billion of
imports from China, while Beijing announced retaliatory
measures. Although those concerns have moderated in recent days, investors worry
that looming trade restrictions
could slow growth in China
and hit demand for commodities, a key export of many developing countries.
The dollar inched down
against the yen, as a late-day
drop in U.S. stocks sent some
investors into the Japanese
currency, which tends to attract buying during times of
political or economic uncertainty. The dollar fell less than
0.1% to ¥105.34.
Despite Tuesday’s gains,
many market participants continue to be wary regarding the
U.S. currency’s longer-term
prospects. The dollar is down
more than 3% in 2018 and has
fallen by 7.45% over the past
12 months. The losses have
come despite expectations
that the Federal Reserve will
raise interest rates three times
this year.
Some investors have attributed at least part of those
declines to concerns over protectionist trade policies, which
have historically weighed on
the dollar. The ICE Dollar Index, which measures the dollar against six major currencies, fell nearly 20% between
2001 and 2003, as the U.S. imposed tariffs on steel imports,
data from TD Securities
showed. It declined around
12% between 1993 and 1995 in
response to contentious trade
relations between the U.S. and
Japan.
Stock Selloff Accelerates Near the Close Oil Prices Fall Amid
BY ALLISON PRANG
AND DAVID HODARI
Shares of technology and financial stocks slumped Tuesday, pushing major indexes
down for the fourth time in
the past five trading days.
The
deTUESDAY’S
clines
exMARKETS
tended
a
spring rout in
sectors that
up until recently had been significant beneficiaries of a
roaring rally that began in the
hours after Donald Trump was
elected as president.
Bank shares, in particular,
sold off as U.S. government
bonds rallied and the yield on
the 10-year Treasury note
dropped below 2.8%. The KBW
Nasdaq Bank Index of large
lenders fell 2.4%, its third decline in five trading sessions.
Lower interest rates tend to
hurt banks by weighing on their
net interest margins, a key
measure of lending profitability.
Bank of America lost 92
cents, or 3%, to $29.52, while
Goldman
Sachs
Group
dropped 7.62, or 3%, to 247.26.
Meanwhile, shares of utility,
telecommunications and realestate firms in the S&P 500,
thought of as bondlike because
of their relatively hefty dividend payouts, logged modest
gains as investors sought safety.
The Dow Jones Industrial
Average ended the session
down 344.89 points, or 1.4%, at
23857.71, after dropping as
much as 483 points as its losses
accelerated in the final 90 min-
On the Defensive
Shares of utilities and real-estate firms were among Tuesday's best
performers, while bond yields dropped.
3%
Utilities
2
1
0
Real estate
–1
–2
S&P 500
–3
9:30 a.m.
noon
Sources: FactSet
utes of trading. The broad S&P
500 slipped 45.93 points, or
1.7%, to 2612.62. The tech-focused Nasdaq Composite declined 211.74 points, or 2.9%, to
7008.81 for its fourth consecutive daily move of at least 2%,
the most since October 2011.
The tech sector led declines
as shares of Facebook
dropped again, falling 7.84, or
4.9% to 152.22 after Chief Executive Mark Zuckerberg said
he expects he will have to testify about the social media
company’s privacy and datause standards. And Tesla
shares sank 25.00, or 8.2%, to
279.18 after the U.S. National
Transportation Safety Board
said in a social-media posting
that two investigators are conducting a field investigation
THE WALL STREET JOURNAL.
into a fatal crash last week.
Matt Lloyd, chief investment strategist for Advisors
Asset Management, said he
thinks rockiness in the tech
sector could persist amid the
prospect of increased regulation. “If you know anything
about regulations, they always
go a little bit overboard, and
there’s unintended consequences and it doesn’t matter
which party’s in power,” he
said. “It’s going to take several
years to get something that’s
probably moderate and appeases most people.”
Some analysts see the recent stock swings as a consequence of investor pessimism
and broadly healthy equitymarket performance.
“The market seemed to be
assuming the worst-case scenario. That they responded this
way may reflect overall positioning because we’ve had quite
a good run and that correction
was a bit stronger than expected,” said Geoffrey Yu, head
of the U.K. investment office at
UBS Wealth Management.
The yield on the 10-year
Treasury note fell to 2.790%,
its lowest close in seven
weeks, from 2.843% Monday.
Seen as relatively safe stores
of value, Treasurys have benefited from turmoil in the stock
market, as well as easing concerns about the potential for a
faster pace of interest-rate increases by the Federal Reserve.
Bond prices have climbed
even as the Treasury is selling
$300 billion of new debt this
week, an outgrowth of expanding U.S. budget deficits
that might normally weigh on
the market.
Meanwhile, rising inflation
has prompted growing speculation about the Fed’s interestrate policy, with some analysts
suggesting the central bank
will increase rates four times
in 2018 instead of the three
times it has penciled in.
Overseas, European stocks
rebounded, with the Stoxx Europe 600 closing up 1.2%.
In early Asian trading
Wednesday, technology stocks
led the way lower, dragged by
the sector’s slide in the U.S.
Japan’s Nikkei Stock Average
sank as much as 2.5% in early
trading. South Korea’s Kospi
slid 1.5%, with Samsung Electronics falling 2.9%.
Geopolitical Anxiety
BY CHRISTOPHER ALESSI
Oil prices closed lower on
Tuesday
as
participants
gauged increasing supply
against geopolitical risks to
producers.
Light,
COMMODITIES sweet crude
settled
down
30
cents, or 0.5%, at $65.25 a barrel on the New York Mercantile
Exchange. Brent, the global
benchmark, fell 1 cent to $70.11
a barrel.
Traders and analysts surveyed by The Wall Street Journal expect government data
due Wednesday to show that
crude stockpiles rose by 1.4
million barrels last week.
The American Petroleum
Institute, an industry group,
said late Tuesday that its own
data for the week showed a
5.3-million-barrel increase in
crude supplies, a 5.8-millionbarrel fall in gasoline stocks,
and a 2.2-million-barrel decrease in distillate inventories, according to a market
participant.
In recent days, prices have
been pulled between potential
production disruptions in Iran
and steadily increasing output
from U.S. shale producers.
“Newly heightened geopolitical risks of a more hawkish
U.S. policy toward Iran…clearly
raises the likelihood of oil
trade disruptions and with it
upside risks to oil prices in the
near term,” said Ehsan Kho-
man, head of research for the
Middle East at Bank of TokyoMitsubishi UFJ in a note on
Tuesday.
A withdrawal by the U.S.
from a 2015 international
agreement to curb Iran’s nuclear program would result in
the reimposition of economic
sanctions on Iran.
In such a scenario, “at minimum, we view that 250,000
to 350,000 barrels a day of
Iranian crude is at risk of being disrupted,” Mr. Khoman
said.
Georgi Slavov, head of research at brokerage Marex
Spectron, noted that “at a
time when demand is relatively strong, any news on
limiting supply like sanctions
on a major oil producer [such
as Iran] will have a positive
impact on the market.” Mr.
Slavov said crude prices also
have been supported by “the
utilization of inventory capacity” outside the U.S., which is
helping to tighten supply
globally.
At the same time, strong
compliance with the Organization of the Petroleum Exporting Countries’ agreement to
hold back crude output by 1.8
million barrels a day has supported prices. OPEC and 10
producers outside the cartel,
including Russia, have been
curbing production since the
start of last year in an effort to
rein in a supply glut.
—Stephanie Yang
contributed to this article.
.
B14 | Wednesday, March 28, 2018
THE WALL STREET JOURNAL.
* ***
MARKETS
Investors Worry They Stayed Too Long
BY ASJYLYN LODER
Bear markets followed periods when 80% of 19 market indicators selected by Bank of America were hit.
The stock market’s violent
swings in recent days have investors wondering anew when
the nine-year bull market will
finally turn bear.
Major indexes dropped
Tuesday, a day after posting
their biggest one-day percentage gain in 2½ years. Stocks
advanced for much of the
trading day before being
dragged lower by technology
and financial shares, extending
last week’s slide when fears of
a trade war weighed on the
market.
The gyrations left the S&P
500 on track for a secondstraight monthly decline—
which would be the index’s
first back-to-back monthly
contraction since 2016. Wall
Street’s fear gauge has
climbed. Short-term borrowing rates have increased to
their highest level in nearly a
decade.
While investors remain eager to squeeze every last dollar out of the bull market, increasingly they are worried
that they will stay in too long.
That has left many investors watching for signs of a
larger pullback. The potential
signals include everything
from stocks’ price/earnings ratios to the gap between shortand long-term bond yields.
One measure of those indicators suggests investors’ jitters
may still be a bit premature.
Late last year, analysts at
Bank of America Merrill Lynch
compiled a set of 19 indicators
that have preceded past bear
markets, which are unofficially
defined as a 20% retreat from
the most recent peak. Right
now, those signposts suggest
that the risk of a downturn is
rising but that a reversal isn’t
imminent.
In the past, bear markets
were on the horizon when 80%
of those signals—which include rising interest rates,
growing consumer confidence,
tightening credit conditions
Percentage of signals triggered
100%
Black
Monday
Tech bubble bursts
Iraq invades Kuwait,
oil prices surge
Financial stocks tumble
80
70
60
50
40
30
20
BEAR MARKET
Sept. 11 attacks
February
market rout
Lehman bankruptcy
10
0
1985
’90
2000
’10
Consumer confidence tends to surge before a market downturn.
Consumer Confidence Index
150
125
100
75
50
25
’90
2000
Investors still haven't embraced U.S. stocks, favoring
corporate-bond and international equity funds instead.
Flows into U.S. exchange-traded and mutual funds,
excluding money-market funds and fund of funds
$700 billion
600
500
400
300
200
100
0
–100
2009 ’10
’10
Lenders began to tighten credit standards before
the past three bear markets.
Percentage of medium and large domestic respondents
tightening standards for commercial and industrial loans
Other
Taxable bond
International
equity
U.S. equity
80%
60
40
20
0
–20
–40
’11
’12
’13
’14
’15
’16
’17
1990
’18
2000
Sources: Bank of America Merrill Lynch (signals); FactSet (consumer confidence); Morningstar (flows); Federal Reserve (tightening standards)
and surging market volatility—have been triggered.
Right now, 13 of the 19 indicators have been tripped. Several others, such as a narrowing gap between short-term
and long-term bond yields, a
condition known as a flatten-
ing of the yield curve, are
inching closer.
While a 68% hit rate might
seem high, this threshold was
typically reached an average
of two years before stocks
peaked in the past seven bear
markets, according to a Bank
of America report dated
March 13.
“It’s too late to react once
you’re in a bear market,” said
Dan Suzuki, senior U.S. equity
strategist at Bank of America
Merrill Lynch. “You want to be
looking out for signs that
’10
LOOSENING TIGHTENING
STANDARDS STANDARDS
1985
THE WALL STREET JOURNAL.
you’re entering a bear market.”
Many of the signals that
worry investors, such as inflated company valuations and
surveys of investor sentiment,
have proven to be unreliable
ways to pick the market peak,
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Buyout War Brews in Paint Sector
Let the paint wars commence.
The sale of Akzo Nobel’s
specialty-chemicals business
to private equity group Carlyle Group and Singapore’s
sovereign-wealth fund, announced Tuesday, will create
a pure-play coatings company potentially attractive to
U.S. paint giants SherwinWilliams and PPG Industries. Deals look likely in a
consolidating industry, but
betting on which deals prevail isn’t straightforward.
At €10.1 billion ($12.5 billion) including debt—roughly
10 times last year’s earnings
before interest, taxes, depreciation and amortization—
Akzo got a better price than
expected for its chemicals division. The private-equity industry is awash with cash,
and Carlyle’s rival bidders included two other U.S. buyout
firms and a Dutch investor.
The “vast majority” of the
proceeds, according to the
company, will be given back
to Akzo’s shareholders. Akzo
needs the goodwill after it
rebuffed repeated takeover
approaches from PPG last
90
Matching Paints
Paint company revenue, 2017
Sherwin-Williams
$15.0 billion
PPG
14.8
11.9
Akzo Nobel
5.6
Nippon Paint
4.4
Axalta
THE WALL STREET JOURNAL.
Source: FactSet
year despite increasingly vocal entreaties to negotiate
from key shareholders, chief
among them activist Elliott
Management.
The battle made clear that
a hostile bid for Akzo is too
risky under Dutch law. The
best hope for would-be acquirers is that management
is more willing to negotiate
under its new chairman, Nils
Anderson, who takes over
next month. The retiring
chairman, Antony Burgmans,
was seen as a key obstacle to
talks.
But this is no sure bet.
New Chief Executive Thierry
Vanlancker seems eager for a
deal of his own. He tried to
engineer a merger with Warren Buffett-backed car-paint
specialist Axalta Coating
Systems late last year, and
didn’t shy from fighting talk
about major acquisitions on
calls with investors and media Tuesday.
The problem is that Akzo’s
still-fragile relationship with
shareholders gives Mr. Vanlancker limited scope to pay
a premium. The Akzo-Axalta
talks broke down after a rival
approach by Axalta’s Japanese competitor Nippon
Paint Holdings raised the
prospect of a bidding war.
The industry’s top executives still expect more mergers, partly due to rising rawmaterial costs. PPG and
Sherwin-Williams both
talked up their readiness for
acquisitions in January results calls. Axalta boss
Charles Shaver told an investor conference this month
that two more big deals
could be possible.
However, the reasons why
last year’s deals didn’t work
out haven’t disappeared. In
fact, the most financially obvious combination—PPG buying Akzo—has become more
challenging because of the
dollar’s weakness against the
euro.
The paint industry still
seems ripe for consolidation.
It is just that last year’s bids
may be no guide to solving
the puzzle. —Stephen Wilmot
OVERHEARD
Apparently, not everyone
on Wall Street subscribes to
the “first things first” mantra.
MiMedx Group, a tissuegraft developer, announced
this week that it planned to
present at the Needham
Healthcare Conference on
Wednesday. Presenters include the company’s chairman
and CEO, Parker H. “Pete”
Petit.
That seems to be a curious use of Mr. Petit’s time,
considering that MiMedx has
significant unresolved issues.
The company has yet to file a
required annual report with
the Securities and Exchange
Commission that was due
earlier this month as the
company investigates allegations of improper sales and
distribution practices. Meanwhile, the SEC and Justice
Department are both looking
into the company.
MiMedx shares are down
about 60% from late January,
so investors clearly could use
a little reassuring. Perhaps filing audited financial statements would be a better way
to help them relax.
Apple Is Getting Schooled by Google in Education Market
The launch of Apple Inc.’s
new iPad in a Chicago high
school is both an effort to
better serve students and one
to fend off Google, which has
caught up and passed the
once-dominant player in the
education market.
Apple CEO Tim Cook gathered media in Chicago to lay
out the company’s newest efforts geared toward the education market. They include a
new suite of software services
along with an updated iPad.
The new tablet adds the company’s latest mobile processor
with some other upgrades for
the same price as its predecessor. That includes a 9%
price discount for schools.
Passing Marks
Apple's unit sales per fiscal year
80 million
60
Mac
iPad
40
20
0
2011 ’12 ’13 ’14 ’15 ’16 ’17 ’18
Note: 2018 is an estimate. FY ends Sept. 30.
Sources: the company, FactSet
Apple last updated its
iPad lineup a year ago, culling some offerings while
trimming the price on its
flagship 9.7-inch version.
That didn’t arrest a long-
running decline in sales for
the pioneering tablet. Unit
sales of the iPad fell 4% in
the fiscal year ended in September, and Wall Street expects an additional 6% decline for the current year.
But Tuesday’s announcement wasn’t simply Apple
trying to bolster what is now
its fourth-largest business,
behind the iPhone, services
and Mac in terms of annual
revenue. The company has
lost ground to Google in the
education market. Apple accounted for nearly half of the
laptops and tablets sold in
the U.S. K-12 market in 2013,
while Google’s Chromebooks
accounted for 20%, up from
1% a year earlier, according to
Futuresource Consulting. Last
year, devices running Google’s
Chrome OS accounted for 58%
of that market.
Altering that trajectory
will be a major challenge,
even for the world’s most
valuable company. Google,
owned by Alphabet Inc., has
the advantage of both price
and ubiquity. The cheapest
Chromebooks are about 40%
less than the cheapest iPad,
and Google’s G-Suite of services is already widespread
in schools. Gmail alone
passed the one billion user
mark two years ago.
Apple’s software often gets
high marks. But the com-
pany’s software and services
work only on its own equipment. That means the company’s prospects are always
closely tied to its ability to
sell devices. And since those
devices still drive the majority of Apple’s operating profits, the company can’t really
afford to compete on price.
Google, which doesn’t
even make most of the
Chromebooks bearing its operating system, has no such
limitations. Apple’s approach
has served it well overall.
But in budget-constrained
markets like education, the
right price isn’t always one
the company can meet.
—Dan Gallagher
Mr. Suzuki said.
“Returns at the end of bull
markets are some of the strongest,” Mr. Suzuki said. “If
you’re a conservative investor,
maybe this means you should
be taking some chips off the
table. But if you’re trying to
capture all of those returns,
then you want to wait.”
Despite the recent volatility,
many analysts think the economic backdrop remains
strong for stocks. Fears of a
trade war between the U.S.
and China ebbed this week following reports that the two
countries were in discussions
to improve U.S. access to Chinese markets.
The Dow Jones Industrial
Average fell 344.89 points, or
1.4% to 23857.71 on Tuesday,
bringing its 2018 decline to
3.5%. The S&P 500 stock index
dropped 1.7%, and the techheavy Nasdaq Composite Index
tumbled 2.9%.
Concerns about tariffs, rising interest rates, inflation
and bloated valuations have
overshadowed good news like
higher corporate earnings and
strong economic growth, said
Joe Zidle, investment strategist for Blackstone Group LP.
And investors have yet to embrace U.S. equities, the way
they have in the late stages of
other bull markets.
U.S. equity exchange-traded
funds and mutual funds have
taken in $281 billion in the
past decade while international stock funds attracted
more than $1 trillion and corporate-bond funds drew $1.9
trillion, according to Morningstar Inc.
“Investors have been unwilling to embrace this bull
market, and now they want to
know when it’s going to end,”
Mr. Zidle said. “The fact that
so many people think it’s
about to end tells me it’s going
to keep going for a while yet.”
“It’s only at the end of a
bull market that investors
jump in with both feet,” he
said.
WSJ.com/Heard
Tech Values
Don’t Fully
Reflect Risk
The problem in tech isn’t
demand. It’s everything else.
Such was illustrated well
on Tuesday when a late-market selloff hit the technology
sector particularly hard. The
Nasdaq Composite slid
nearly 3%—double the loss of
the Dow. And the selling hit
every segment, from internet
companies to chip makers to
software providers. Even Apple, which kicked off the day
with a cheery event designed
to showcase new iPad and
other offerings for the education market, shed 2.6% by
the close.
Nvidia’s shares fell nearly
8%, while Facebook shed
nearly 5%. In the case of
Nvidia, the chip maker announced it was temporarily
halting road tests of its driverless-car technology following a fatal crash involving an
Uber vehicle. It isn’t clear if
that vehicle was using
Nvidia’s chip products, and
these chips are just a small
part of its business, but the
news still cast a pall over the
stock.
For Facebook, the selloff
came on news that CEO Mark
Zuckerberg will testify before Congress about the social network’s handling of
user data. That raises fears
about government regulation
for the company.
Tech stocks have been on
a long winning streak on
strong demand for hardware,
software and services. But
the sector’s growing clout
over everyday life also raises
the risks of what can go
wrong. The Nasdaq Composite has spent the past month
trading at a 28% premium to
the S&P 500 as a multiple of
forward earnings, compared
with its three-year average of
22%. That is a sign that
tech’s new risks haven’t been
fully priced in.
—Dan Gallagher
Документ
Категория
Журналы и газеты
Просмотров
0
Размер файла
16 057 Кб
Теги
The Wall Street Journal, newspaper
1/--страниц
Пожаловаться на содержимое документа